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Indian ban on cotton exports, boon for US growers
26 Apr '10
2 min read
Order books of US cotton exporters are getting full after India restricted overseas sales of the fibre, thereby, creating an impact in the global cotton trade.
Competitiveness of textile mills in the neighbouring countries such as Bangladesh, China and Pakistan will also suffer from the restriction imposed by India.
By cultivating Bt cotton seeds, India has rapidly turned into the world's second largest exporter of cotton. In view of the sharp raise in cotton prices, the Indian textile commissioner also suspended overseas sales until further orders.
According to ICE July cotton futures, futures increased by 5.7 percent to 86.20 cents per pound, since the announcement of the restriction. Therefore, India's move to soothe yarn spinners, who were dejected over the increasing prices of cotton in the international market, has proved advantageous for the US.
According to traders, cotton producers in West Africa have recorded a sudden swing amongst their buyers. Also, exporters from Australia and Brazil are ready to take up new orders.
Post India's announcement about restriction on cotton exports, US shippers have experienced a sudden increase in inquiries for the fibre.
The shift in policy has also meant heavy losses for cotton exporters. In addition, China, India's key cotton customer, will have to hunt for alternate supplies from America.
Competitiveness of textile mills in the neighbouring countries such as Bangladesh, China and Pakistan will also suffer from the restriction imposed by India.
By cultivating Bt cotton seeds, India has rapidly turned into the world's second largest exporter of cotton. In view of the sharp raise in cotton prices, the Indian textile commissioner also suspended overseas sales until further orders.
According to ICE July cotton futures, futures increased by 5.7 percent to 86.20 cents per pound, since the announcement of the restriction. Therefore, India's move to soothe yarn spinners, who were dejected over the increasing prices of cotton in the international market, has proved advantageous for the US.
According to traders, cotton producers in West Africa have recorded a sudden swing amongst their buyers. Also, exporters from Australia and Brazil are ready to take up new orders.
Post India's announcement about restriction on cotton exports, US shippers have experienced a sudden increase in inquiries for the fibre.
The shift in policy has also meant heavy losses for cotton exporters. In addition, China, India's key cotton customer, will have to hunt for alternate supplies from America.
Fibre2Fashion News Desk - India
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