India to End Cotton Export Curbs on Record Harvest

India, the world’s second-largest cotton grower and exporter, will end curbs on overseas sales in the new crop year amid forecasts for a record harvest, said a government official July 1.

“The next season, we won’t have these restrictions,” A.B. Joshi, the nation’s textile commissioner, said in an interview in Mumbai. The limits applied in April are a “very temporary measure.”

Ending export curbs “would increase competition for U.S. cotton, particularly to their next door neighbor, China,” said Mike Stevens, an independent trader in Mandeville, LA. “It should help relieve the shortage of supplies.”

India halted export registrations to cool domestic prices and bolster supplies, and then introduced a new permit system for shipments a month later. A bigger local crop and resumption in sales may pressure global cotton prices and reduce costs for Gap Inc., Wal-Mart Stores Inc. and J.C. Penney Co., which buy garments from suppliers in South Asia.

“India is a big supplier to some of the key textile- manufacturing countries who had been big importers and who had been fairly short, so this really helps them,” said Scott Briggs, an agricultural commodities strategist at Australia & New Zealand Banking Group Ltd. “This India move is pretty important.

“We’re in a pretty tight physical stocks situation, so we are probably at a level of prices where a fair bit of bullishness is already put in there over a production cost level,” said Briggs. “Anything that starts pushing us back toward a surplus is going to quickly erode that premium.”

India’s production in the year starting October 1 may reach a record as higher prices spur plantings, Joshi said. Output may total as much as 32.5 million bales in the year starting October 1, up from 29.2 million bales, D.K. Nair, secretary general of the Confederation of Indian Textile Industry, said on June 30.

“My expectation is that we will have a very good crop,” commissioner Joshi said. “We expect higher cotton output, after meeting the increased domestic demand, there would be a surplus and it will continue to be exported.”

India may increase sales to buyers including China, the biggest consumer, Joshi said. The Asian country will lift its import quota by almost 1 million tons and sell more from state reserves to meet a deficit, the China Cotton Association said.

China accounted for 57 percent of the 7.38 million bales shipped by India from Oct. 1 to June 15, according to data from the textiles commissioner’s office. Total shipments were double from the year-earlier period.

“China’s appetite is very high, so they would continue to ask for Indian cotton,” Joshi said.

Under the new permit system, about 300,000 bales that were registered before the curbs were imposed on April 19 have been permitted for sales to Bangladesh and Pakistan, the commissioner said. The remaining 500,000 bales would be cleared for shipment in the coming months, he said.

“Registered but unshipped quantities are likely to be allowed, not new contracts” in the current season, he said. Next season, the country will scrap the permit system and revert to the export registration regime,” he said.
 

Leave a Reply

2 comments on “India to End Cotton Export Curbs on Record Harvest

  1. India has the potential to export cotton without any restrictions, if it learns how cotton is produced using modern crop production technologies available elsewhere. The average productivity of cotton in India is about 300 bales of lint cotton per acre compared to close to 1000 bales for the US and over 1500 bales in California. The farming system is relatively primitive with fertilizer use efficiency and water use efficiency are relatively nil. Compete analysis of soils for the 12 different plant nutrtients is alien to Indian agriculture and and crop is planted without prior to balancing the nutrients in the soil. Continued farming under these cricumsatances have created soils with very low fertility that cannot support a decent crop. Besides, the over emphasize on ntrogen leaves higher rates of residual nitrogen in the soil which is washed away with surface run off of rain water. Plowing only 4 to 5 inches deep has developed a subsurface hard pan in farm lands preventing neither perolaton of water enhancing water run off nor deep plant root development.
    Whereas California farmers irrigate cotton fields only 3 to 4 times durng growth period, Indian farmers have to irrigate every week because of the hard pan that prevents irrigated water percolation down the soil profile and also due to the shallow root system developmet due to the hard pan. This not only reduces productivity but also entails use of enormous amounts of water for irrigation. It is estimated that in order to produce one unit of mass by cotton plant, Indian farmers use 49 times more water. In our exoerience,if technologies are provided to correct these two factors, the productivity will jump 300%. The hurry to sell Bt cotton to these poor innocent farmers at several times more cost drives them to commit suicides in droves in the main cotton gowing areas of the country. Is it too hard to part with cotton production technologies to these miserably poor farmers along with Bt cotton?

  2. India has the potential to export cotton without any restrictions, if it learns how cotton is produced using modern crop production technologies available elsewhere. The average productivity of cotton in India is about 300 bales of lint cotton per acre compared to close to 1000 bales for the US and over 1500 bales in California. The farming system is relatively primitive with fertilizer use efficiency and water use efficiency are relatively nil. Compete analysis of soils for the 12 different plant nutrtients is alien to Indian agriculture and and crop is planted without prior to balancing the nutrients in the soil. Continued farming under these cricumsatances have created soils with very low fertility that cannot support a decent crop. Besides, the over emphasize on ntrogen leaves higher rates of residual nitrogen in the soil which is washed away with surface run off of rain water. Plowing only 4 to 5 inches deep has developed a subsurface hard pan in farm lands preventing neither perolaton of water enhancing water run off nor deep plant root development.
    Whereas California farmers irrigate cotton fields only 3 to 4 times durng growth period, Indian farmers have to irrigate every week because of the hard pan that prevents irrigated water percolation down the soil profile and also due to the shallow root system developmet due to the hard pan. This not only reduces productivity but also entails use of enormous amounts of water for irrigation. It is estimated that in order to produce one unit of mass by cotton plant, Indian farmers use 49 times more water. In our exoerience,if technologies are provided to correct these two factors, the productivity will jump 300%. The hurry to sell Bt cotton to these poor innocent farmers at several times more cost drives them to commit suicides in droves in the main cotton gowing areas of the country. Is it too hard to part with cotton production technologies to these miserably poor farmers along with Bt cotton?

Harvest Stories
Harvest

NCC Urges Cotton Quality Maintenance Following Rain Events

October 7, 2016

Growers and ginners are urged to follow proper guidelines to preserve cotton crop quality following Hurricane Matthew and other rain events at harvest.

Harvest

Cotton Looks Promising in Texas’ Rolling and High Plains

October 19, 2016

Good late-summer rains improved conditions for cotton in the Rolling and High Plains regions of Texas and likely mean an above-average crop for 2016.

Harvest

Possible Storm Impact on North Carolina Cotton

October 11, 2016

NC State specialists offer guidelines for making harvest decisions on cotton acres impacted by tropical storm Matthew.

Harvest

Is Cotton Turning Too Soon?

August 31, 2016

Mid-South cotton normally “turns,” or reaches senescence, during the early weeks of the football season. This year, there are reasons why that change is already appearing before the first kickoff.

Harvest

Harvesting Bottom Line Advantages

August 11, 2016

Options such as co-ownership and sharing of farm equipment are helping provide financial advantages to growers across the country.

Harvest

Proper Timing of Harvest Aids Focus of New Webcast

July 25, 2016

A new webcast explaining proper timing and use of harvest aids has been added to the Focus on Cotton online series from the Plant Management Network and Cotton Incorporated.

Harvest

Prolonged Rainfall in Carolinas Causes Seed Sprouting

October 5, 2015

The rainy spell that has soaked North Carolina for more than a week is creating problems for the state’s cotton growers.

Around The Gin
Product News

Six Greenleaf Nozzles Approved for Use with XtendiMax

February 24, 2017

Six TurboDrop D Series nozzles from Greenleaf Technologies have been approved for use with Monsanto’s XtendiMax herbicide with VaporGrip Technology.

Product News

EPA Approves DuPont’s FeXapan Dicamba Herbicide

February 17, 2017

DuPont has received EPA registration for FeXapan herbicide plus VaporGrip Technology, a low-volatility dicamba formulation for use on cotton and soybean varieties carrying traits that provide tolerance to dicamba and glyphosate herbicides.

Product News

Fourteen Southern States Register Enlist Duo for Use on Enlist Crops

February 14, 2017

Thirteen Southern states have granted state registration of Enlist Duo herbicide for use on Enlist cotton and other crops, following federal registration received in January.

Product News

BASF Application Academy Adds Online Training Module

February 2, 2017

BASF has added an online training module to its On Target Application Academy stewardship program to help increase education of new and advanced herbicide technologies.

Product News

Bayer Offers Shared Risk Program for FiberMax, Stoneville Growers

January 26, 2017

Bayer is helping support the economic sustainability of cotton growers through the company’s 2017 Shared Risk Program for those who plant FiberMax and Stoneville cotton seed.

Product News

Enlist Duo Herbicide Registered for Use on Enlist Cotton

January 13, 2017

The U.S. EPA has registered Enlist Duo herbicide for use on Enlist cotton varieties, beginning in 2017.

Product News

Data Show Yield Gains from Indigo Cotton in 2016

January 9, 2017

Data collected from 2016 trials show that Indigo Cotton – a seed treatment based on naturally occurring, in-plant microbes to help increase water use efficiency – led to yield improvements on testing acres, including an 11% average yield increase in West Texas.

Product News

FiberMax and Stoneville Release New Varieties for 2017

January 9, 2017

Cotton growers searching to match the right variety the right field now have two new FiberMax varieties and two new Stoneville varieties to consider for 2017.

Latest News
Harvest

Cotton Looks Promising in Texas’ Rolling and High Plains

October 19, 2016

Good late-summer rains improved conditions for cotton in the Rolling and High Plains regions of Texas and likely mean an above-average crop for 2016.

Harvest

Possible Storm Impact on North Carolina Cotton

October 11, 2016

NC State specialists offer guidelines for making harvest decisions on cotton acres impacted by tropical storm Matthew.

Harvest

NCC Urges Cotton Quality Maintenance Following Rain Events

October 7, 2016

Growers and ginners are urged to follow proper guidelines to preserve cotton crop quality following Hurricane Matthew and other rain events at harvest.

Harvest

2016 Mid-South Defoliation Guide Now Online

September 9, 2016

The 2016 edition of the Mid-South Cotton Defoliation Guide is complete and now available online.

Harvest

Managing Proper Defoliation Timing

September 1, 2016

Proper defoliation planning helps protect yields. But it’s just as important when it comes to maximizing fiber quality.

Harvest

Is Cotton Turning Too Soon?

August 31, 2016

Mid-South cotton normally “turns,” or reaches senescence, during the early weeks of the football season. This year, there are reasons why that change is already appearing before the first kickoff.

Harvest

Harvesting Bottom Line Advantages

August 11, 2016

Options such as co-ownership and sharing of farm equipment are helping provide financial advantages to growers across the country.

Harvest

Proper Timing of Harvest Aids Focus of New Webcast

July 25, 2016

A new webcast explaining proper timing and use of harvest aids has been added to the Focus on Cotton online series from the Plant Management Network and Cotton Incorporated.

Harvest

Prolonged Rainfall in Carolinas Causes Seed Sprouting

October 5, 2015

The rainy spell that has soaked North Carolina for more than a week is creating problems for the state’s cotton growers.

Harvest

Keep Soil Compaction in Mind at Harvest

September 28, 2015

Since new module-building cotton pickers are adding more weight to fields during harvest, growers should keep in mind the factors that can contribute to soil compaction.

Harvest

2015 Mid-South Defoliation Guide Available Online

September 15, 2015

The 2015 Mid-South Cotton Defoliation Guide is now available online.

Harvest

Key Considerations for Cotton Defoliation

August 27, 2015

With the 2015 cotton crop quickly winding down, it’s time for growers to be making their defoliation plans.

Harvest

Preserving Fiber Quality Should Drive Defoliation Decisions

August 25, 2015

When making defoliation plans, there is more economic incentive for growers to maintain fiber quality when cotton prices are low versus when cotton prices are higher.

Harvest

When’s the Best Time to Terminate Cotton Irrigation?

August 18, 2015

As cotton moves closer to maturity, growers need to consider certain factors carefully when deciding to turn the water off for this year’s crop.

Harvest

First Bale for 2015 Delivered to Texas Gin

August 7, 2015

The first certified bale of U.S. cotton for 2015 was delivered to the Harlingen Gin Company by the Ortega brothers of Mercedes, TX.