cotton industry | COTTON PRICE

Import Of 2.5 L Cotton From Oz To Happen Soon

Published: May 8, 2023
Author: DIGITAL MEDIA EXECUTIVE

The domestic market for cotton is seeing fewer arrivals, which is causing a rise in the demand for imported cotton in the textile industry. Sources claim that 2.50 lakh duty-free bales from Australia have been ordered by Indian spinners. In three months, this cargo is anticipated to arrive in India.

In addition to Australia, many participants intend to purchase cotton from Africa because the federal government has implemented a programme that will waive half of the import duty for imports from developing nations.

The cotton crop in India is thought to total more than 340 lakh bales, according to Jayesh Patel, vice president of Spinners’ Association Gujarat (SAG). The slowdown in arrivals this year is due to the fact that many farmers held out on selling their whole harvest in anticipation of higher prices.

He claimed the Indian cotton continues to be more expensive than other countries’ cotton. “We intend to import over 2.50 lakh duty-free bales of cotton from Australia in the upcoming three months. Last year, these imports from Australia surged dramatically. Shipments will shortly begin after importers have placed their orders, according to Patel.Australian cotton has a low moisture content, which allows spinners to produce yarns with greater realisation. Australian cotton yarn is also more expensive for spinners since it is free of contamination.

Industry experts predict that a significant chunk of the Australian cotton will go to Gujarat-based spinning factories. In 2022, India imported $283 million worth of cotton from Australia, more than four times the amount imported the year before. Imports into the Indian textile industry were about 4.75 lakh bales of cotton last year, more than 2.5 times as many as the year before.

Former Powerloom Development and Export Promotion Council (PDEXCIL) chairman Bharat Chhajer stated that the textile sector is considering the possibility of importing cotton from African nations as well. The federal government recently stated that imports from developing nations would have their import duties reduced by half. This indicates that several African countries allow the import of cotton at a duty rate of about 5.50 percent. The price of cotton in India has remained stable, and traders may import cotton from Africa. In India, cotton prices last year hit a record high of Rs 1.10 lakh per candy (356kg), which is currently equivalent to about Rs 61,500 each sweet.

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