Category: FIBRES
Country: India
Region: Asia
By Apparel Resources
News-Desk
08-May-2023 | 2 mins read
The domestic market for cotton is seeing fewer arrivals, which is causing a rise in the demand for imported cotton in the textile industry. Sources claim that 2.50 lakh duty-free bales from Australia have been ordered by Indian spinners. In three months, this cargo is anticipated to arrive in India.
In addition to Australia, many participants intend to purchase cotton from Africa because the federal government has implemented a programme that will waive half of the import duty for imports from developing nations.
Jayesh Patel, the vice-president of Spinners’ Association Gujarat (SAG), said, “India’s cotton crop is estimated at more than 340 lakh bales. However, the arrivals have remained slowed this year because many farmers have not sold their entire crop in the anticipation of better prices.”
He said that the prices of Indian cotton have remained higher than the international cotton. “Our cotton imports from Australia have increased significantly last year and this year too, we expect around 2.50 lakh duty-free imports of bales in the next three months. Importers have placed orders and shipments will start soon,” said Patel.
Australian cotton has a low moisture content, which allows spinners to produce yarns with greater realisation. Australian cotton yarn is also more expensive for spinners since it is free of contamination. Industry experts predict that a significant chunk of the Australian cotton will go to Gujarat-based spinning factories.
In 2022, India imported US $ 283 million worth of cotton from Australia, more than four times the amount imported the year before. The amount of cotton imported by the Indian textile sector last year was approximately 4.75 lakh bales, more than 2.5 times the amount imported the year before.
Courtesy: Apparel Resources
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