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

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

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.

Harvest

Storms Shred Thousands of Cotton Acres in Arkansas

October 9, 2014

To date, Mother Nature has blessed the latter part of the cotton season – including early harvest – with favorable

Cotton Production

Updated Mid-South Defoliation Guide Now Available Online

September 16, 2014

With defoliation and harvest season nearing, the 2014 Mid-South Defoliation Guide has been updated and is ready for grower use.

Around The Gin
Product News

Monsanto Donates Research Center to Local Foundation

June 27, 2016

Monsanto Company has donated its 150-acre Leland Agronomy Center to The B.F. Smith Foundation, a nonprofit organization in the Mississippi Delta.

Product News

Record Yields Set by 2015 FiberMax One Ton Club

May 4, 2016

The 127 members who qualified for the FiberMax One Ton Club pushed cotton yields and quality to higher levels in 2015.

Product News

Meister Media Worldwide Website Relaunches With New Resources

April 22, 2016

Meister Media Worldwide — publisher of Cotton Grower magazine – has relaunched its corporate website, highlighting information and services available from one of agriculture’s leading media companies.

Product News

ReinCloud Promises Remote Control

April 18, 2016

New software set to combine irrigation management and data collection – all in the palm of your hand.

Product News

Search Begins for Deltapine Class of 17

April 14, 2016

Deltapine’s NPE program is nine years old, and the search for the company’s Class of 17 cotton varieties is underway.

Product News

Texas Farmer First to Plant Enlist Cotton Variety

April 11, 2016

Dean Hansen of El Campo, TX, was the first cotton grower in North America to plant the first commercially-available cottonseed with the Enlist cotton trait.

Product News

New Options for Roundup Ready PLUS Program

March 25, 2016

The Roundup Ready PLUS Crop Management Solutions program for 2016 includes a new tool for weed management and new incentives for farmers looking to fight insect pests in corn.

Product News

Greenleaf Launches easyFlow Closed Transfer System

March 24, 2016

Greenleaf Technologies has launched the company’s new easyFlow closed transfer system for the North American market.

Latest News
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.

Harvest

Storms Shred Thousands of Cotton Acres in Arkansas

October 9, 2014

To date, Mother Nature has blessed the latter part of the cotton season – including early harvest – with favorable

Cotton Production

Updated Mid-South Defoliation Guide Now Available Online

September 16, 2014

With defoliation and harvest season nearing, the 2014 Mid-South Defoliation Guide has been updated and is ready for grower use.

Cotton Production

Terminate Cotton Irrigation at First Cracked Boll

August 26, 2014

Darrin Dodds, Mississippi State Extension cotton specialist, says that when growers see the first cracked boll in their cotton fields, it’s time to terminate their irrigation program.

Cotton Production

Cotton Harvest Looking Good in Lower Rio Grande Valley

August 15, 2014

As cotton harvest begins in the Lower Rio Grande Valley of Texas, growers are optimistic that this year’s crop will help erase the disappointments of the last few growing seasons.

Cotton Production

First Certified Cotton Bale of 2014 Delivered to Gin

July 10, 2014

While most cotton growers are battling plant bugs and resistant weeds and watching for first blooms, Sam and Josh Ruiz of La Feria, TX have delivered 2014’s first official certified bale of cotton.

Cotton Production

Long-Awaited On-Board Module Building Strippers Come to the High Plains

May 5, 2014

After years of toil and innovation, John Deere is introducing the John Deere CS690 Cotton Stripper, hoping to bring the proven successes of on-board module-building harvesters to much of the Southwest.

Cotton Production

USDA Announces 2014 Cotton Loan Rate Differentials

April 15, 2014

USDA's Farm Service Agency has announced the 2014-crop loan rate differentials for upland and extra-long staple (ELS) cotton.

Cotton Production

Bayer CropScience Honors 328 Growers at FiberMax One Ton Club

April 10, 2014

Bayer CropScience honored 328 FiberMax cotton growers who achieved one-ton yields during 2013 and membership into the FiberMax One Ton Club.