India Intends To Impose Quantitative Restrictions On Cotton Exports

India's financial bulletin reported on July 18th that cotton prices in India rose by 35% last year, making it impossible for India textile enterprises to execute domestic and export orders.

In order to increase domestic market supply and curb the further rise in cotton prices, the India government is considering a quantitative restriction on cotton exports, allowing only a certain number of cotton exports.

The bill is still under discussion and is likely to be announced next week.

In July 8th this year, the India government abolished export incentives such as cotton import tax and export tax rebate to curb the further rise in cotton prices.

But the Indian government's move did not reduce cotton prices.

The main reason is that the cotton imported from India after the import tax was super long cotton, which accounted for only 5% of India's domestic consumption.

The largest domestic consumption in India is short, medium and long staple cotton, which can be self provided and imported without India.

In addition, the high price of cotton in the international market and the hoarding of cotton by some international traders of cotton also led to a surge in cotton exports and a surge in domestic cotton prices.