China changes policy India's cotton exports hit

According to Mumbai’s April 17 news, Indian raw cotton export materials have sharply decreased by about 20% in the next crop year, as the Chinese government put reserve cotton into the market, causing the country’s demand to decline.

Industry officials said that the above decline was higher than this year's nearly 6%, China's policy changes, coupled with increased consumption of Indian cotton and yarn exports blowouts.

The global cotton market has been paying close attention to the end of the Chinese cotton purchasing and storage policy. Through this policy, China has already stockpiled more than 10 million tons of cotton, which is about 60% of global cotton stocks.

MBLal, former president of Cotton Corporation of India, said: “The export of cotton will decline year-on-year, and the export of cotton in 2014/15 will not exceed 700-7.5 million bales.” India’s cotton year is from October to September each year.

More than 60% of India's raw cotton exports were sold to China. The remaining cotton is sold to Bangladesh, Pakistan and Vietnam respectively.

Industry officials stated that India's cotton shipments have reached 8.2-8.5 million bales so far in 2013/14, and exports are expected to increase to 9.2-9.5 million bales as of September. India is the second largest cotton producer and exporter in the world.

India's cotton exports in 2012/13 were 10.1 million bales, down from 12.9 million bales in the previous year.

China imported 147,317 tons of cotton from India in February, a decrease of 20% from the previous month. In January this year, China announced that it would end the acquisition of the State Reserve Cotton and instead provide direct subsidies to farmers.