The exports of cotton from India to China stood at 26 lakh bales in 2014-15, a drop of 57% compared to 61 lakh bales exported in 2013-14, as per information provided by Commerce and Industry Minister Nirmala Sitharaman. This drop in export has led to subdued prices in the domestic market.
The main reason for drop in export is the adoption of new cotton policy by China. China’s stock levels have reached over 8,000 million kg and due to this they are importing less. India is however protecting farmers by providing Minimum Support Price (MSP) and is looking for export of cotton to the various other cotton deficient countries.
India’s overall exports in June dipped by 15.82 percent and stood at $22.28 billion, contracting for the seventh month in a row. The fall in global demand, decline in commodity prices and dip in oil prices are impacting India’s trade.