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By: FE Bureau | New Delhi | Published: September 22, 2018 2:44 AM India’s cotton exports to China may see a fivefold jump India’s cotton exports to China may see a fivefold jump to 4 million bales in the marketing year starting October 1 (2018-19), after the neighbouring country slapped a 25% additional duty on imports of the fibre from the US on July 6, amid the trade standoff between the world’s two biggest economies, trade sources said. Indian traders have already entered into a forward contract with Chinese buyers to deliver about 1.2 million bales between November and January, these sources added. Though some quantities have been contracted for exports to Bangladesh and Cambodia as well, maximum contracts have been with China. China is set to return as a major cotton importer, taking 10 million to 15 million bales each year by 2019-20, Reuters has reported recently, quoting an analyst at trading house Louis Dreyfus Company. However, a likely decline in India’s cotton production in the next season, low closing stocks (2.2 million bales) and higher minimum support prices announced recently might dent India’s export prospects, analysts said. India is slated to conclude cotton exports of 0.8 million tonnes to China in 2017-18 (October-September) season. In value term, the country’s exports of the fibre peaked at $3.4 billion in the financial year 2011-12 and has since fallen sharply to $133 million in FY18; in April-July this fiscal, the exports were $119 million. “China’s cotton stocks have reduced and it has been a net importer to meet its garment demand,” said Atul Ganatra, president of the Mumbai-based Cotton Association of India. China has an annual output of 35 million bales against consumption of about 50 million bales.

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