Gaining from the ongoing trade war between the US and China, India has bagged deals to export 200,000 bales of cotton to China.
Gaining from the ongoing trade war between the US and China, India has bagged deals to export 200,000 bales of cotton to China. The contracts have been signed with China that sought to impose tariffs on cotton supplies coming out of the US last week, Reuters reported citing head of a trade body. Around 7 million bales each of 170 kg of the fibre in 2017-18 are expected to be exported by India against 5.8 million bales shipped in the last season, Reuters reported citing Atul Ganatra, president of the Cotton Association of India. India is the world’s second-largest exporter of cotton.
In the next season beginning October, India is planning to sell 2.5 million to 3 million bales to China. In 2017-18 marketing year, 800,000 bales were expected to be exported, he said earlier. China announced earlier that it will impose tariffs on 106 US commodities, including cotton. The latest estimated export figures by the industry indicates that the balance is tilting in India’s favour. China imposed tariff in the range of 25 percent on the cotton supplies from the US as China’s own stockpile is reducing fast. The cotton imports by China are expected to rise 38 percent to 8-9 million bales in 2018-19, Reuters said.
Around 32 bales of cotton are produced by China and 45 million bales are consumed by textile mills allowing the imports to meet the shortfall.
Meanwhile, area under cotton acreage most probably will decrease nearly 15 percent as farmers are shifting towards soybean eyeing better returns and after the Pink Bollworm infestation in Maharashtra and Telangana that damaged the crop cutting down income of farmers.
The ongoing trade war has created an environment of fear all across the world.