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Related Keywords: both countries, CAI, CCA, China Cotton Association, cooperation, counterpart in China, dissemination and speedy resolution, information exchange, making cotton trading safer, partnership will go a long way, promote good cotton trading practices, regular exchange of delegations, signed an MoU, The Cotton Association of India, training

The Cotton Association of India (CAI) has signed an MoU with its counterpart in China, the China Cotton Association (CCA) to promote good cotton trading practices and cooperation. The partnership will go a long way in making cotton trading safer in both countries.

According to Nayan C Mirani, President CAI, India and China are the largest cotton economies, and signing this MOU will go a long way in resolving the issues faced by traders in both the countries.

Related Keywords: benchmark rates, bring transparency in the price discovery mechanism, CAB, CAI, cotlook index, cotton price index, cotton production, curb speculations across various markets, domestic and international, four different sources, futures, ICF, India plans to launch, MCX, spot, tracks delivered price of American cotton in China, trading platforms

India, in its attempts to curb speculations across various markets and trading platforms, and bring about further transparency in the price discovery mechanism is planning to launch a cotton price index of its own for which it will be taking into account benchmark rates from four different sources.

Related Keywords: Bangladesh and Indonesia, CAI, government may not roll out subsidies, increase in cotton prices, lower freight. India first choice for buyers, No rebound seen in Demand from China, other two major buyers of Indian cotton, Pakistan contracted import of cotton bales, Pakistani garments manufacturers, see Indian market as a big opportunity

Demand from China may not see a rebound as normally it buys more than 50 per cent of India’s shipments. But Pakistan has, so far, contracted to import one million bales (170 kg each) of cotton from India after the crops there were affected by floods, according to Dhiren N Sheth, president of the cotton association of India (CAI).

Pakistan is buying more cotton from India as both the quality and quantity of the crop has come down. Pakistan’s cotton production is expected to drop 25 per cent to 11.4 million bales this year, the lowest since 2003.

Related Keywords: CAB, CAI, cotton corporation of India, export of cotton to Bangladesh, global tender, growing domestic demand, ICAC, logistics better and easier, plans to tap Vietnam, reworking pricing strategy, SIMA

The Cotton Corporation of India (CCI) has finally decided to come out with global tender for export of cotton to Bangladesh. CCI chose Bangladesh as the logistics are better and easier to manage either by the sea or roadways. China, the world’s biggest buyer, is importing less of the fibre from this year which has affected Indian export.

China has been the largest importer of Indian cotton over the last three years. According to CCI CMD BK Mishra, the response from Bangladesh has been good and should this sale be successful, CCI has plans to tap Vietnam as well.

Related Keywords: CAI, change in Chinese reserve policy, cotton export, cotton prices, cotton season, decline in prices, demand for better quality, domestic consumption, explore new market, ICE, showing signs of recovery

In the last week of January cotton prices ruled at at Rs14,420 a bale (170 kg) – near a five-year low which is some 14 percent below the levels seen at beginning of the cotton season, which began in October. However, cotton prices have now been showing signs of recovery over the last one month.

Decline in prices is attributed mainly to record domestic production and waning exports to China due to change in its reserve policy.