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China will turn to US to make up for cotton shortfall

13
Mar '12
The Chinese textile industry is in a quandary ever since the Indian government banned exports of cotton and subsequently withdrew the ban; albeit partially.

The Chinese industry will now have to turn to other sources like the US and Uzbekistan to make up for the shortfall from India.

Since the beginning of the current cotton season, India has imported around 800,000 tons of cotton from India and about 480,000 tons from the US.

India became a preferred source for importing cotton as Indian cotton was available at around 18,000 to 18,500 Yuan per ton, much lower than 19,800 Yuan per ton paid by the government under state reserves.

Experts anticipate a rise in US cotton prices, if the Chinese textile industry, the biggest global consumer of cotton, turns towards the US to fulfill its requirements.

Fibre2fashion News Desk - China


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