In recent months, US upper cotton exports to India have increased rapidly. The prices of demand from American cotton, tariff controversy and demand from India are declining. The latest figures are mentioned in the data released by the US Agriculture Department (USDA). It is said that weekly exports have reached the peak in the week of February 20, which has been the highest in the last two and a half years.
Exports rose in February and April
Citing data from the US Agriculture Department (USDA), News Agency Reuters and American Cotton have reportedly increased to 155,260 hours between February and April, compared to 25,901 Bell in the same period last year. The increase in exports is due to rising tension between the US and China, resulting in a decrease in American cotton exports to Beijing. The Ministry of Finance said China would impose 125 per cent tariffs on American commodities, which had earlier announced earlier.
The second largest market after India, China
According to Ajay Kedia, Director of Kedia Advisors who have grown up in China, China, Texas and other parts of the country. The research and technology of the alternative selection, Justin Cardewell, said, at the same time, exports are expected to decrease to China. India is the second largest cotton producer in the world after China. It is one of the largest cotton yarn processors and exporters in the world. However, declining yields have recently transformed the country into a net importer of pure exporters.
10 % reduction in import duty
India mainly imports additional long staples (ELS) cotton from the US. He also gets a 10 percent duty exemption on this. Short staple cotton, however, pays 11 % import duty. Kedia said, “American Else Cotton is costly due to its high -jinguing capacity, improved fluffy yield and improved fiber quality for most Indian buyers.” The Cotton Association of India (CI) has reduced its cotton production estimate to 30.1 million knots this year, which shows a decline of 7.84 percent from the 2023-24 season.
Reduction in cotton production this year
So far this year, Ice Cotton Futures fell about 5 percent. Director of Central Cotton Research Institute, Y. Yes. Prasad said there would be a shortage of 2.5 million pastes in India this year, and the error could be met by increasing imports. According to CAI, the decline in production is expected to double India’s cotton imports in 2024-25. India also imports cotton from Australia, Brazil and Egypt.
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