MUMBAI (Commoditiescontrol) - Cotton imports by China in August stood at 70,000 tons, down 65.8 percent from the same month a year ago, according to customs data. As per the data, this is the lowest monthly level in atleast 9 years, since 2005.
The government has issued fewer import quotas to the country’s importers in its effort to boost demand for the domestic crop.
However, unused quotas by mills are likely to be reallocated later in the year, which is expected to support imports in the last few months of 2015.
The processing quota, which is thought to account for about a third of the almost 900,000 tons of import quotas allocated each year by Beijing, can only be used for cotton that will be re-exported once it has been processed.
But then, the country still holds about 11 million tons in its reserves, despite a month long state auctions. Reserve cotton auctions failed to receive strong bids and by the end of the auctions the country could liquidate only 63,412 tons of cotton, just 3.4 percent of the total offered.
Traders are of the opinion that huge reserve stock will force the country to restrict imports further, keeping monthly shipments below 100,000 tons.
(By Commoditiescontrol Bureau; +91-22-40015532)
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