There is a worrisome phase ahead for India’s cotton exports in wake of China planning to retract from imposing 25% tariff on US cotton by the advent of March. It’s a bit of bad news emanating from the two countries putting in efforts to resolve their trade war.
The bid to arrive at a compromise has led Chinese importers to renegotiate orders placed to Indian cotton yarn worth USD 400 to 500 million in the recent past.
The tariff war between US and China had provided Indian cotton exporters a boon period. From previous June to September the US had imposed high custom duties on Chinese goods. China responded in equal measure imposing levy on American goods. This resulted in a 32% rise in Indian exports to China. The export figure stood at USD 8.46 billion during the June-November season.
India benefitted because of the pressure on China to buy from India. This was because of heavy duties China had imposed on American cotton, disclosed a ministry official.