11/19/2014
Shift in China’s import policy, global glut to hit domestic cotton market | The Financial Express
19-Nov-2014 (10:19 AM) Nifty : 8417.60 -0.1
SENSEX
-11.45
28151.84
HOME (/)
(-0.04%)
ACC : 1483.70 -0.22
NIFTY
8417.60
Ambuja Cement : 226.75 0.07
-8.30
GOLD (MCX)
252.00
(-0.10%)
26562.00
(0.96%)
Asian Paints : 694.65 -0.89
USD
61.94
Axis Bank : 469.50 -0.95NSEBajaj
BSEAuto : 2675.95
0.10
GBPINR
-0.20
(0.17%)
96.68
(-0.21%)
COMMODITIES
Shift in China’s import policy,
global glut to hit domestic
cotton market
November 18, 2014 2:45 am
IN THE NEWS
(http://www.financialexpress.com/article/lifestyle/health/manfrom-rajasthan-shows-ebola-like-symptoms/)
Man from Rajasthan shows Ebola-like
symptoms
(http://www.financialexpress.com/article/lifestyle/health/manfrom-rajasthan-shows-ebola-likesymptoms/)
(http://www.financialexpress.com/article/economy/globalslavery-index-the-india-story/)
(http://www.addthis.com/bookmark.php?v=300&winname=addthis&pub=pranjal26&source=tbx32-300&lng=enGlobal Slavery Index: The India Story
(http://www.financialexpress.com/article/economy/globalUS&s=google_plusone_share&url=http%3A%2F%2Fwww.financialexpress.com%2Farticle%2Fmarkets%2Fcommodities%2Fshift-in-chinas-import-policy-global-glut-to-hit-domestic-cottonslavery-index-the-india-story/)
market%2F&title=Shift%20in%20China%E2%80%99s%20import%20policy%2C%20global%20glut%20to%20hit%20domestic%20cotton%20market%20%7C%20The%20Financial%20Express&ate=ATpranjal26/-/-/546c2441b10582dc/2&frommenu=1&uid=546c24410c47743e&ct=1&tt=0&captcha_provider=nucaptcha)
(http://www.addthis.com/bookmark.php?v=300&winname=addthis&pub=pranjal26&source=tbx32-300&lng=enUS&s=reddit&url=http%3A%2F%2Fwww.financialexpress.com%2Farticle%2Fmarkets%2Fcommodities%2Fshift-in-chinas-import-policy-global-glut-to-hit-domestic-cottonTODAY´S PAPER (../TODAYS-PAPER/)
market%2F&title=Shift%20in%20China%E2%80%99s%20import%20policy%2C%20global%20glut%20to%20hit%20domestic%20cotton%20market%20%7C%20The%20Financial%20Express&ate=ATpranjal26/-/-/546c2441b10582dc/3&frommenu=1&uid=546c24417b27daef&ct=1&tt=0&captcha_provider=nucaptcha)
DoT plans 2-stage bid, prices to hit the roof
(http://www.addthis.com/bookmark.php?v=300&winname=addthis&pub=pranjal26&source=tbx32-300&lng=en(http://www.financialexpress.com/article/economy/dotUS&s=linkedin&url=http%3A%2F%2Fwww.financialexpress.com%2Farticle%2Fmarkets%2Fcommodities%2Fshift-in-chinas-import-policy-global-glut-to-hit-domestic-cottonplans-2-stage-bid-prices-to-hit-the-roof/)
market%2F&title=Shift%20in%20China%E2%80%99s%20import%20policy%2C%20global%20glut%20to%20hit%20domestic%20cotton%20market%20%7C%20The%20Financial%20Express&ate=ATAfter Vodafone, Bombay HC strikes down tax
pranjal26/-/-/546c2441b10582dc/4&frommenu=1&uid=546c24417e337d99&ct=1&tt=0&captcha_provider=nucaptcha)
0
SUMMARY
To boost demand for domestic cotton, China, the world’s top consumer of cotton, will
slash its import quotas for 2015.
Other Articles
A sudden shift in Chinese import quota system coupled
Editorial: Golden cures
with a glut in the international
(http://www.financialexpress.com/article/markets/commodities/editorial-
market will have an impact
demand on Shell too
(http://www.financialexpress.com/article/industry/companies/aftervodafone-bombay-hc-strikes-down-tax-demandon-shell-too/)
Infosys BPO CFO sacked for ‘failing to comply with
the company’s code of conduct’
(http://www.financialexpress.com/article/industry/companies/infosysbpo-cfo-sacked-for-failing-to-comply-with-thecompanys-code-of-conduct/)
which has already gone below the MSP, will slide further
The next ad frontier: Brain scans, eye sensors
(http://www.financialexpress.com/article/industry/thenext-ad-frontier-brain-scans-eye-sensors/)
Maharashtra mills to
with an expected bumper crop in the current harvesting
seek relief package from
season. Consequently, the yarn prices, too, is expected to
Centre
(http://www.financialexpress.com/article/markets/commodities/mahacome under pricing pressure.
mills-to-seek-reliefpackage-from-centre/)
RIL seeks 1-year extension for developing CBM
blocks in MP
(http://www.financialexpress.com/article/economy/rilseeks-1-year-extension-for-developing-cbmblocks-in-mp/)
golden-cures/)
on the Indian cotton market. The domestic cotton price,
Currently, the demand for cotton from domestic yarn mills
Sluggish demand likely to
is on the lower side on account of the higher domestic
weaken coconut oil
cotton price as compared with international prices,
prices
(http://www.financialexpress.com/article/markets/commodities/sluggishcoupled with lack of quality cotton worth spinning as well
demand-likely-toas existing high inventory with yarn mills, said a study
weaken-coconut-oildone by Care Ratings.
prices/)
GALLERIES (/PICTURE-GALLERYSECTION/BUSINESS-GALLERY/)
Further, the demand for cotton in international market is
sliding, which can be largely linked to China’s new cotton policy, as China
constitutes about 60% of the India’s cotton exports. Cotton export from India is
estimated to fall from high of 11 million bales in 2013-14 to 6-7 million bales in
2014-15.
To boost demand for domestic cotton, China, the world’s top consumer of cotton,
will slash its import quotas for 2015. China will provide import quotas next year
only for the 894,000 tonne that it is required to offer at low duties under
commitments with the World Trade Organization (WTO) and no additional quota
would be made available as it was made previously. Non-quota imports are
subject to a 40% tariff, so the restricted availability of import quotas will dampen
Chinese demand for foreign cotton and the same will hurt Indian exports, said the
study.
The Chinese government will also end the three-year- long programme to
stockpile domestic cotton to support local growers and instead offer subsidies
direct to farmers. As the Chinese government offloads its three year reserve stock
of cotton, mills will get access to cheaper cotton from the local market and the
same will reduce their dependence on imports. So, China is unlikely to be an
aggressive buyer this year and its imports are expected to decline significantly.
Over the past few years, India has achieved significant growth in cotton
India's Foreign Trade,
3 important tips to
FDI in Construction
improve financial health
Development, BSE
(http://www.financialexpress.com/photos/businessSensex, Nifty, Gold
gallery/3-important-tipsimport and more
to-improve-financial(http://www.financialexpress.com/photos/businesshealth/)
gallery/indias-foreigntrade-fdi-inconstructiondevelopment-bsesensex-nifty-goldimport-and-more/)
http://www.financialexpress.com/article/markets/commodities/shift-in-chinas-import-policy-global-glut-to-hit-domestic-cotton-market/
1/3
11/19/2014
Shift in China’s import policy, global glut to hit domestic cotton market | The Financial Express
Over the past few years, India has achieved significant growth in cotton
production. India’s cotton production has grown from 14 million bales (of 170 kg)
in 2000-01 to 37.5 million bales during 2013-14. The growth in cotton production is
driven by increase in area under cotton cultivation as well as growth in yield. The
area under cotton cultivation in India has increased from 85.76 lakh hectares in
2000-01 to 115.53 lakh hectares in 2013-14, while yield has grown from 278 kg per
hectare to 518 kg per hectare during the same period.
According to the study, during the current year (2014-15), the area under cotton
cultivation in India has further increased to reach a record level of 125 lakh
hectares. There has been sharp increase in cotton acreage in Gujarat,
Maharashtra, Karnataka and Andhra Pradesh.
By R Ravichandran
TAGS:
Land Rover gives Range
Rover, Range Rover
Sport major boost
(http://www.financialexpress.com/photos/businessgallery/land-rover-gives- Videocon launches
Infinium Z50Quad ‘slim
range-rover-rangesmartphone’, prices it at
rover-sport-majorRs 7,349
boost/)
(http://www.financialexpress.com/photos/businessgallery/videoconlaunches-infiniumz50quad-slimsmartphone-prices-it-atrs-7349/)
Business buzz
Cotton (/tag/cotton)
Financial Express
Fe full feed (http://www.financialexpres…
MORE FROM COMMODITIES
Trinamool Congress open to joining
anti-BJP alliance, says Mamata Banerjee
Maharashtra mills to seek relief package
Editorial: Golden cures
Making clear her willingness for an alliance of
from Centre
(http://www.financialexpress.com/article/markets/commodities/editorialnon-Bharatiya Janata Party (BJP)...
(http://www.financialexpress.com/article/markets/commodities/mahagolden-cures/)
mills-to-seek-relief-package-from-centre/)
Alternative savings instruments are needed
Fe full feed (http://www.financialexpres…
Sluggish demand likely to weaken coconut
Markets scale new peaks on fund
oil prices
inflows
(http://www.financialexpress.com/article/markets/commodities/sluggishSurpassing all previous records, the benchmark
demand-likely-to-weaken-coconut-oil-prices/)
BSE Sensex and NSE Nifty hit their new lifetime
highs to 28,260.66 and 8,447.40 respectively....
Financial Express
@FinancialXpress
+
Crowdynews
EDITOR’S PICK
(http://www.financialexpress.com/article/industry/tech/nokia(http://www.financialexpress.com/article/economy/with(http://www.financialexpress.com/article/economy/globalunveils-n1-tablet-an-apple14-3-mn-enslaved-peopleslavery-index-the-india-story/)
ipad-lookalike/)
india-is-the-slavery-capitalGlobal Slavery Index: The India
Nokia
unveils
N1
tablet…
an
of-the-world/)
Story
Apple iPad lookalike
With 14.3 mn enslaved people,
(http://www.financialexpress.com/article/economy/global(http://www.financialexpress.com/article/industry/tech/nokiaIndia is the slavery capital of the
slavery-index-the-india-story/)
unveils-n1-tablet-an-apple-ipadworld: Global Slavery Index
lookalike/)
(http://www.financialexpress.com/article/economy/with14-3-mn-enslaved-people-indiais-the-slavery-capital-of-theMORE FINANCIAL EXPRESS
world/)
FE Events
INT. REPORTS
Fe EVI Survey 2011-12
JUNGFRAU - Top of
(http://epaper.financialexpress.com/41350/FEEurope
Write a comment...
EVI-Survey-2010-
(http://epaper.financialexpress.com/315491/Indian-
11/2012-FE-
Express/04-August-
EVI#page/1/1)
2014#page/19/1)
Best Banks
Luxurious Dubai
(http://archive.financialexpress.com/bestbanks/)
(http://epaper.financialexpress.com/365041/IndianExpress/30-October-
Name
Email
Post
SUPPLEMENT(S)
2014#page/25/1)
SME World
India-Russia
(http://epaper.financialexpress.com/71148/SME(http://epaper.financialexpress.com/77372/International-
Latest
Most Engaged Stories
WORLD/27-November-
Reports/India-Russia-
2012#dual/1/1)
Summit#page/1/1)
FE 500
Business Aviation
(http://epaper.financialexpress.com/91200/FE(http://epaper.financialexpress.com/45043/Indian500/February-
Express/02-July-
2013#dual/1/1)
2012#page/13/1)
to make a mark
India Inc
India-Russia Jun 12,
With rupee going through period of volatility, education for Indian student may
be costliest ever.
inc/46)
(http://epaper.financialexpress.com/42024/Indian-
eFE
Express/12-June-
World's top 200 university rankings: Massachusetts, Harvard tops the list while Indian universities fail
1 comments
Diwali effect
(http://archive.financialexpress.com/supplement/India2012
(http://archive.financialexpress.com/supplement/efe/47)
2012#page/21/1)
FE Investor
DefExpo India 2012
In India, many people look at year-on-year changes to track the state of the
economy. This indicator has important weaknesses. It is the moving average of
the change seen in the latest twelve months and is hence a sluggish indicator
of the changes in the economy.
(http://archive.financialexpress.com/supplement/fe(http://epaper.financialexpress.com/31698/DefExpo-
1 comments
impact/77)
(http://epaper.financialexpress.com/30854/Indian-
India's Best Banks
Express/28-March-
investor/48)
India-2012/DefExpo-
Corporate Impact
India-2012#page/1/1)
(http://archive.financialexpress.com/supplement/corporateTurkey
http://www.financialexpress.com/article/markets/commodities/shift-in-chinas-import-policy-global-glut-to-hit-domestic-cotton-market/
2/3
11/19/2014
Shift in China’s import policy, global glut to hit domestic cotton market | The Financial Express
(http://archive.financialexpress.com/supplement/india2012#page/21/2)
Subscribe via RSS
best-banks/79)
Switzerland
Realty World
(http://epaper.financialexpress.com/30538/Indian-
(http://archive.financialexpress.com/supplement/realityExpress/26-Marchworld/87)
2012#page/17/2)
Market Impact
Qatar
(http://archive.financialexpress.com/supplement/market(http://epaper.financialexpress.com/29033/Indianimpact/78)
Express/16-March2012#page/25/1)
India Aviation
(http://epaper.financialexpress.com/28813/IndianExpress/14-March2012#page/21/1)
Saudi Arabia
(http://archive.financialexpress.com/download.php?
fileName=SaudiArabia.pdf)
Amazing Australia
(http://archive.financialexpress.com/download.php?
fileName=AmazingAustralia.pdf)
More FE
The Indian Express Group
Print Edition (/todays-paper/)
The Express Group
iPhone App (http://itunes.apple.com/us/app/financial-
(http://expressindia.indianexpress.com/news/expressgroup/)
iPad App (http://itunes.apple.com/in/app/theexpress-for-iphone/id508738603?mt=8)
The Indian Express (http://www.indianexpress.com/)
Android App
financial-express/id491303242?mt=8)
Loksatta (http://www.loksatta.com/)
RSS
(/syndication/)
(https://play.google.com/store/apps/details?
Jansatta (http://www.jansatta.com/)
ePaper
(http://epaper.financialexpress.com/)
id=com.financialexpress.android)
Exims (http://www.exims.in/)
Facebook
Screen (http://www.indianexpress.com/Showbiz/)
Twitter (https://twitter.com/FinancialXpress)
(https://www.facebook.com/thefinancialexpress)
Express Towers (http://www.expresstowers.in/)
Google + (https://plus.google.com/+financialexpress)
You Tube (http://www.youtube.com/indianexpress)
StumbleUpon
Pintrest (http://pinterest.com/indianexpress/)
(http://www.stumbleupon.com/stumbler/indianexpress)
Express Pharma (http://pharma.financialexpress.com/)
Express Healthcare
(http://healthcare.financialexpress.com/)
Food & Hospitality World
(http://hospitality.financialexpress.com/)
Express TravelWorld (http://travel.financialexpress.com/)
Express Computers
(http://computer.financialexpress.com/)
Ramnath Goenka Awards
(http://expressindia.indianexpress.com/ramnath-goenkafoundation/)
Advertise with Us
(http://expressgroup.indianexpress.com/advertise.html)
Feedback (/feedback/) | Site Map (/sitemap/) | Privacy Policy (/privacy-policy/) | Contact Us (/contact-us/)
Copyright © 2014 The Indian Express ltd. All Rights Reserved.
http://www.financialexpress.com/article/markets/commodities/shift-in-chinas-import-policy-global-glut-to-hit-domestic-cotton-market/
3/3