In the recent months, India has been rapidly increasing in US upland cotton exports. It is said that the US cotton, the payment dispute and the demand from India are attributed to the demand. Recent statistics have been reported in data published by the US Agriculture Department (USDA). The weekly exports are said to have reached its peak in the week of February 20, which has been the highest in the last two and a half years.
Exports increased in February and April
Reuters news reports that US cotton to India has increased to 155,260 between February and April, citing data of the US Agriculture Department (USDA), compared to 25,901 hours of last year. This increase in exports is said to be increasing tension between the US and China, which has caused Beijing to decline in US cotton exports. China will impose 125 per cent fees for US goods, the Ministry of Finance has said that it is more than 84 percent previously announced.
India, the second largest market after China
According to Kedia Advisors Director Ajay Gadia, these fees and China demand declined and the upland cotton grown in Texas and other regions is now getting a market in India. Justin Cardwell, Chairman of the Research and Technology of Alternative Option, is expected to decrease to China. India is the world’s second largest cotton manufacturer after China. It is one of the largest cotton yarn processors and exporters in the world. However, declining yields have recently become the net import of pure exporters.
10 % discount on import duty
India imports more long staples (ELS) cotton from the United States. He also receives the benefit of 10 percent of the obligation. Short main cotton pays up to 11 percent of the import duty. Kedia says, “American Els Cotton is costing many Indian buyers due to its high efficiency, excellent lund yield and excellent fiber quality.” The Cotton Association of India (CI) reduced its cotton production estimate to 30.1 million knots this year, which shows a decline of 7.84 per cent from 2023-24 season.
A reduction in cotton production this year
So far this year, the future of ice cotton has fallen by about 5 percent. Director of Central Cotton Research Institute, Y. Yes. Prasad said there would be a shortage of 2.5 million lumps in India this year, and this defect could be met by increasing imports. According to CAI, India’s cotton imports are expected to double in 2024-25 as production is declining. India imports cotton from Australia, Brazil and Egypt.
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