In April, the Indian government imposed banned cotton exports and also imposed an export duty, by announcing suspension of new cotton export registrations, in order to ensure adequate supply to domestic textile sector.
Affected by the decision of the Indian government, spot prices in international cotton market rose sharply. Cotlook A index hit the highest mark since October 1995.
China's total imports of cotton remained at basically the same levels in April, when compared with the previous month, of which, import volume under tariff quota accounted for more than 50 percent.
Imports from India declined due to its adjustment of cotton export policy; therefore, India was relegated to the second place; while cotton imports from the United States continued to increase, becoming the preferred source of cotton imports.
According to customs statistics, China imported 324,000 tons of cotton in April, basically the same as the imports in March, but, 1.2 times higher than in the same period last year. The average import price in April was US $1755 / ton, up 0.76 percent from March, and up 41.8 percent year on year.
In the first four months of 2010, China's cotton imports totaled 1.17 million tons, up 1.8 times year on year. In the first eight months of cotton year 2009-10, China's total cotton imports registered 1.72 million tons, up 94.4 percent year on year.
Fibre2fashion News Desk - China