US-China fight to help Indian farmers

INDIA IS looking to sell 25 lakh to 30 lakh bales, each of 170 kg, to China in the next season beginning in October, up from around eight lakh bales.

Mumbai, April 5: India, the world’s second-biggest cotton exporter, is hoping to treble shipments of the fibre to China next year as Beijing seeks to replenish stockpiles and imposes a 25 per cent import tax on cargoes from the United States.

Despite India’s efforts to grab a bigger piece of the Chinese market, cotton from the US, the world’s biggest exporter, has held sway for the past few years. But China’s announcement that it will impose tariffs on 106 US commodities, including cotton, could now tilt the balance in India’s favour.

“China’s move to impose duty on US cotton shipments will help us,” Atul Ganatra, president of the Cotton Association of India, said.

India is looking to sell 25 lakh to 30 lakh bales, each of 170 kg, to China in the next season beginning in October, up from around eight lakh bales of expect- ed exports in the 2017-18 marketing year, Mr Ganatra said.

China’s decision to slap the 25 per cent import tax on cotton supplies from the United States comes as Beijing’s own stockpile is depleting fast. Its total imports are expected to rise 38 per cent to 80-90 lakh bales in 2018-19 as it needs to shore up depleting domestic reserves.

During the current 201718 year, China is scheduled to import 25 lakh bales of cotton from the US. Other suppliers include Brazil and Australia.