Home / Knowledge / News / Textiles / New China policy may derail Indian cotton exports
New China policy may derail Indian cotton exports
27
Mar '14
The new Chinese cotton policy has the potential to derail Indian raw cotton exports to the biggest cotton consuming country in the world.

As per the new policy to be made applicable from April 1, the Chinese government has lowered cotton auction bids to 17,250 Yuan per ton, down 4.2 percent from its current floor price of 18,000 Yuan per ton, a move which can only stymie Chinese demand for Indian raw cotton.

The new policy also mandates that Chinese buyers, who buy four bales from the state cotton reserve, will be permitted to import only one bale of raw cotton at concessional duty rates. In the policy released last year, the ratio was 3:1.

“In anticipation of the new cotton policy, Chinese cotton buyers had already scaled down purchases in the last two months. However, the impact will be mainly felt by other cotton exporting countries rather than India”, Mr Vishwanathan, Secretary of Indian Cotton Federation told fibre2fashion.

He continues, “Since India by itself consumes a good volume of cotton, so even if the Chinese cut down on their imports, there will not be a big impact on the Indian cotton industry. Nor do I see any impact on Indian cotton prices”.

“China has also added imported cotton to its reserves and if the buyers do not have to pay import duty on this imported cotton, it could mean lesser demand for Indian cotton”, Mr Anand Popat, Secretary of Saurashtra Ginners Association, informs.

He adds, “At the same time, if Chinese importers do not have to pay duty on the one bale that they are allowed to import on the four bales that they purchase from reserves, then I do not anticipate any fall in demand for Indian cotton”.

According to a recent USDA estimate, China will hold 60% of the global cotton stocks by the end of the 2013-14 cotton season, which is equivalent to 163% of its annual consumption. Correspondingly, India the second biggest consumer of cotton will hold only 11% of global cotton stocks, the report adds. 

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 23rd Jun 2017

Textile ministry organises training workshop on GST

The ministry of textiles had organised training workshop on GST which ...

Apparel/Garments | On 23rd Jun 2017

Uware Brands into licensing agreement with Polaroid

Uware Brands has entered into a licensing agreement with Polaroid for ...

Textiles | On 23rd Jun 2017

Ralph Lauren ex-president Tiger of Sweden's new CEO

Hans-Christian Meyer, former president of Ralph Lauren Corporation,...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search