Foreign news reported on April 26 that textile mills in southern India have begun signing cotton import agreements after the government decided to allow cotton to enter India duty-free before September 30.
“Tamil Nadu textile mills have started placing orders for imported cotton. As a strategy, textile mills have placed production orders for 30-40 days in order to The domestic cotton market is rebalancing.” said Prabhu Dhamodharan, convener of the Indian Textile Entrepreneurs Federation (ITF).
Trader Anand Poppat said: “Since the tax exemption was implemented on April 13, textile mills in southern India have signed at least 100 bales (170 kg each) import agreements every day. These Imports will begin within 2 months.”
But the number of signed agreements so far has not been fully calculated.
Due to the sharp increase in domestic cotton prices, the government allowed duty-free import of cotton for a period of time. In addition, because spinning mills cannot obtain high-quality cotton, they slow down production to expand inventories.
At its meeting last month, the Cotton Production and Consumption Council (CCPC) lowered its forecast for India’s cotton production in the season ending in September to 34.062 million bales, lower than The 35.248 million bales in the previous year were the lowest level in three years.
Poppat said that cotton may be imported from Brazil, the United States, Africa, and we may even import cotton from Australia.
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