Cotton exporters wait for China's quota decision.

Although the federal government of India has lifted restrictions on cotton exports, those who intend to export are faced with many factors before making the decision.

China has not yet declared imports in the most feasible export destinations, China, Bangladesh and Pakistan. cotton Quotas may be announced this month. China is also a big buyer of cotton in India.

According to Rakesh Rathi, a cotton exporter and President of the North India Cotton Association, according to the prevailing prevailing international market prices, an exporter may earn 1500-2000 rupees / candy (356 kg). But there are still many minor problems.

After announcing the lifting of the export ban, New York ICE cotton fell 1.9% to 89.5 cents / pound for two consecutive days. The export policy of the India government has gone wrong, which has damaged India's image as an exporting country. India's domestic spinning mills bought cotton in stock two weeks ago, but the international buyers are different. They plan to buy Cotton three to four weeks ahead of schedule. Rakesh Rathi said, therefore, we may not be able to get urgent orders. Global buyers are bewildered by trading with India because of the policy backsliding.

The export policy is unstable. India Cotton prices have to be discounted. Some exporters say that because of changes in the policies of the India government, they can not develop long-term relations with buyers, so they must negotiate at a lower price. Dhiren Shah, President of India Cotton Association, added that the cotton industry hopes that this will eventually boost exports. He said letting free market conditions dominate the market. Exporters may have to resort to tools such as hedging to overcome exchange rate fluctuations.

According to existing estimates, cotton ginning plants, traders and exporters jointly hold 3 million 500 thousand bales of cotton stock. By the end of April, 80% of cotton had entered the market, and the export of cotton could threaten the domestic spinning industry. Spin The factory currently lacks working capital to maintain cotton stocks.

The cotton planting time may be postponed this year because the harvest time is longer in April. Therefore, cotton is likely to enter the market in mid October instead of mid September in 2012-13 years. However, no matter whether this is a problem or how much cotton there is in the market, it is not clear now because exporters are not sure how many buyers will come forward to buy India cotton.