Parliament was informed today that the cotton prices in the domestic market are subdued due to plunge in India’s exports to China in 2014-15. Export of cotton from India to China has witnessed turn down by 56.72 per cent from 61 lakh bales in 2013-14 to 26 lakh bales in 2014-15.
As a result, there had been slowness in the domestic prices as compared to last year, commerce and industry minister Nirmala Sitharaman said in a written reply to Rajya Sabha. Cotton policy adopted by China is the major reason for less imports.
China has reduced cotton imports as their stock levels have reached over 8,000 million kg also the reduction in import quota granted to actual users of cotton thereby discouraged direct import by spinners and encouraged them to buy more of domestic cotton and from government agencies holding stock.
India, to protect farmers has fixed the minimum support price, it is a form of market intervention by the government to insure cotton producers against any sharp fall in prices. India is also looking for export of cotton to the various other cotton deficient countries, she added.
On overall exports, she said that fall in global demand, decline in commodity prices and dip in oil prices are impacting India’s trade.
