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Dubai Cotton Centre promotes trade flow of organic cotton
23
Mar '10
Dubai Cotton Centre (DCC), the cotton trade facilitation arm and a fully owned subsidiary of DMCC, announced its expansion into the global cotton trade by completing the sale of 750 metric tonnes Indian organic cotton to Malaysia between December 2009 and February 2010 in a move aimed at adding value to the supply chain in this niche market.

• Delivers 750 metric tonnes of Indian organic cotton to Malaysia
• Facilitates re-export of 45,700 metric tonnes of raw cotton fibre valued at US$70 million since inception
• Promotes trade flow of organic cotton

The consignment is the first initiative by DCC to facilitate the trade in Indian cotton, which is a highly competitive and booming export product. The development also marks a new chapter in DCC's successful efforts to increase its value and presence in the international cotton industry by expanding the sourcing origins according to client requirements. These initiatives have focused on the supply of US, Brazilian and West African cotton apart from Indian cotton with Jebel Ali in Dubai emerging as a pivotal international cotton hub.

“Dubai's growing prominence as a trading hub in the global cotton trade has reached new heights with the sale of Indian organic cotton to the Far East,” said Ahmed Bin Sulayem, Executive Chairman, DMCC. “Our unique mix of services and physical location is helping to facilitate increased quantity in cotton trade flows with beneficial impacts felt across the entire value chain encompassing producing countries as well as the ultimate buyers across the globe.”

During four months of operations in 2009, DCC facilitated a re-export volume of 17,600 metric tonnes of raw cotton fibre valued of US$25 million. In the first quarter of 2010, DCC facilitated re-export by a further 28,100 metric tonnes valued at US$45 million. Since inception, the Centre has facilitated re-export of 45,700 metric tonnes of raw cotton fibre with a total value of US$70 million.

Worldwide, the production of organic cotton is increasing, with the incorporation of organic fibre into product lines becoming the norm, rather than the exception. In 2009, the market for organic textiles exceeded US$5 billion according to figures from Organic Exchange, a charitable organization committed to expanding organic agriculture, with a specific focus on increasing the production and use of organically grown fibers such as cotton.

The organic cotton market has experienced exponential growth for a number of reasons. The foremost reasons are innovative thinking on the part of brands and manufacturers about the social and environmental impact of their products and improved consumer awareness of sustainability issues. The adoption of organic fibre by many large-scale brands has also brought a tremendous breadth of organic products to the marketplace.

Dubai Cotton Centre (DCC)


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