India'S New Cotton Policy Has Little Impact On Cotton Prices In China.

Recently, India announced the new

Export policy limits the number of single registrations of cotton exports to less than 1700 tons.

However, the industry believes that the new deal has limited impact on the cotton market.

"Because it only restricts the quantity of cotton exports, not the total export volume."

Shanghai mid-term cotton analyst sees thunder thunder to say.

According to the information released yesterday by China cotton information network, the India General Administration of foreign trade (DGFT) announced recently the India cotton export contract of 2012/13, which has been implemented since October 1st.

The export registration certificate (RCs) will be issued by 7 designated local authorities, such as ah met bar, Bangalore, Chennai, New Delhi, Hyderabad, Calcutta and Mumbai.

The exporter can only apply for an export registration certificate at a time. The number of cotton registered for export registration is up to 10000 packages (1700 tons). The number of exported cotton has not reached 1500 packages (255 tons) in the previous year, and traders who have not yet exported cotton can not export more than 1500 packages (255 tons).

Traders will be able to submit new applications once the shipment has completed 50% of the current export registration certificate.

A letter of credit for the shipment of cotton should be attached when submitting a new application.

For India's new export policy, analysts believe that the impact on domestic cotton market will be very limited.

"Because it only restricts the quantity of cotton exports, not the total export volume."

Shanghai mid-term cotton analyst sees thunder thunder to say.

He believes that the domestic cotton prices are relatively stable at present, and the system of collecting and storing and export quotas is still in operation. The domestic cotton price trend mainly depends on downstream demand, while the domestic economy has yet to show signs of obvious improvement. Downstream demand is still showing signs of weakness, and cotton prices may continue to maintain a trend of volatility.

Yesterday, Zhengzhou cotton futures prices rose slightly by 0.03%.

In fact, India tried to ban cotton in 3 and April this year.

At that time, international cotton prices fluctuated sharply.

However, this practice in India was under pressure from the market and ultimately failed.

"Even if India does not adopt restrictive export policies, India's exports of cotton will also decrease significantly this year."

See thunder.

It is understood that about 65% of India's cotton exports to China, and this year, because of the lower cotton prices in the US market, most domestic enterprises imported cotton from the United States instead of India. Due to the reduction of Chinese orders, India's cotton exports will drop sharply this year.

According to the India Cotton Advisory Committee, in the 2012-2013 year, due to the sharp reduction in China's demand, India's cotton exports were expected to be reduced to 7 million packages, compared with 12 million 800 thousand exports last year.

India

Commissioner ABJoshi said: "China's output is good, and China has huge inventories, so China's imports will shrink."

Data show that India has exported about 13 million bales of cotton so far.

However, as domestic prices rose in India, imports began in June, -7.

So far, the total number of import contracts has reached 100-120 bales.