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After the Chinese government’s move to counter US trade restrictions by putting cotton under the proposed tariff list, India — the world’s second biggest cotton exporter — eyes a promising proposition with the Dragon country.
China is the second biggest market for Indian cotton (28.5 mm variety) after Bangladesh. India exported 154,857 tonnes of the fibre to China and 350,488 tonnes to Bangladesh in 2016-17. As per the DGFT data, during April 2017-January 2018, India shipped 57,549 tonnes to China and 296,805 tonnes to Bangladesh.
Experts noted that India’s exports will surge amid trade war between US and China. “Currently, China is left with 25 per cent of its stock. Imports from the US may fall on higher tariff. In this situation, we can see Chinese demand opening up for India in January 2019 and there will be good opportunity for Indian cotton in the Chinese market,” said Atul Ganatra, President, cotton Association of India.
The country’s cotton exports for the current marketing year (October- September) is estimated to cross 60 lakh bales (of 170 kg each). In the event of Chinese market creating more opportunities, exports may surge further.
According to market sources, China bought about 2.5 million bales from the US in 2017 crop year.
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