Indian ban forces spinners to import Australian cotton.

With India’s restriction on exports of cotton, Bangladeshi domestic spinners are importing huge quantities of cotton from Australia, which is of premium quality but expensive.

Apparently, an all time-high volume of Australian produced cotton bales have been booked by Bangladeshi spinners, amounting to over 1,50,000 bales, each of 180 kg.

Within the last few weeks itself, Bangladeshi spinners have placed orders for almost 30,000 tons of Australian cotton. A Singapore-based leading international commodity trading house has alone, dealt with over 20,000 tons of cotton contracts.

Although, China, Indonesia and Vietnam are the key buyers of Australian cotton, Bangladesh’s yearly requirement from Australia stands at 5,000 tons or less. Despite, Bangladesh importing many other agro-commodities from Australia, the relation between Australian cotton growers and Bangladeshi spinners has never been encouraging.

As per a spinner, Australian cotton lured the Bangladeshi spinners owing to its higher price value. But India’s restriction on exports of cotton and with dearth in the international supply of the commodity, the Bangladeshi spinners was pushed to buy cotton from Australia.

Meanwhile, with India easing their ban on cotton exports since May 21, it was still uncertain for the Bangladeshi spinners and cotton importers to trust their Indian source.

Bangladeshi spinners are yet awaiting for the release of at least 1,50,000 bales of cotton, for which the letters of credit were inked before the imposition of the ban. Most likely, the Indian suppliers were now even giving various excuses about them delivering the contracted stock.

More so, the Bangladeshi spinners are ready to pay the duty that is imposed on cotton exports by the Indian government, but suppliers are dilly-dallying with arranging the stocks.
 
Source :-  Fibre2Fashion News Desk - India