Market Dynamics: India Announced Tariff Reduction Ice Cotton Rose Sharply

 

India's decision to exempt cotton import duties and agricultural taxes will ensure that the country's textile industry has sufficient supply of cotton. Recently, cotton prices in the ice period rose sharply due to drought in major cotton producing areas of the United States.

Ice cotton touched the limit on Wednesday as India's decision to allow duty-free imports strengthened the bullish outlook for the cotton market. An analyst said that factors such as the drought in the southern United States and the decline in Indian production supported the futures price.

Sanjay kjain, manager of TT Industries Limited, said ice cotton rose more than 5% overnight after India's decision to import duty-free. "The decision to postpone the duty-free import of cotton for two months has hurt the value-added industry. Cotton prices are unlikely to fall, but this decision will help to ensure the supply of natural cotton."

A trader from Delhi said that the rise in cotton prices during the ice period restricted imports, but helped cotton enterprises to maintain operation during the non peak period of July September.

Market sources said that if prices fell, India could get cotton from some African countries, such as the United States, Brazil, Australia, Cameroon and Burkinabe. According to sources, cotton mills in southern India are more eager to import cotton, which they can import through the ports of Tuticorin, Nava Sheva and mudra. From the perspective of logistics cost, Australia and African countries are relatively feasible import sources. However, cotton prices in other countries are currently high and are not suitable for import.