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Brazil withdraws 10% duty on cotton imports
Sep '10
According to the foreign trade chamber – Camex, Brazil has removed a 10-percent tariff on cotton imports, because of the apprehension in the market, that the present cotton supplies will not be adequate to fulfil its domestic requirements.

This decision will be effective from October 2010 and continue up to May 2011, and will be valid for 250, 000 tons of cotton lint.

Andre Alvim de Paula Rizzo – the Deputy Executive Secretary of Camex, revealed that the yield has recorded considerable fall this year. There is expected to be a shortage of cotton in the market. Therefore the cut on tariffs will continue as long as the supply does not improve.

The Brazilian Cotton Producers Association (Abrapa) reported that, Brazil's total crop yield is estimated at 1.07 million tons for 2009/10, which is lower than 1.19 million tons, recorded during the previous season.

Towards the beginning of the cropping season, the output was anticipated to touch 1.28 million tons, but owing to the dry weather conditions prevailing in the last few months, particularly in Mato Grosso – the major producing state of the country, the output is expected to come down.

Haroldo Cunha – the President of Abrapa, apprehends the scarcity of cotton in the market. He adds that the textile industry is purchasing a lot of cotton and there is inadequate carry-over stock. The annual cotton consumption of Brazil is around 1 million tons.

Fibre2fashion News Desk - India

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