Shaoxing cotton imports should adhere to a diversification strategy

Since this year, cotton imports in Shaoxing County have soared. According to the statistics from Shaoxing Customs, from January to July, 1,880 tons of cotton were imported from Shaoxing County, worth USD 3.53 million. There was no import record in the same period of last year, an increase of 77.1% compared with the same period of 2008.

In the first seven months, the United States was the largest source of cotton imports in Shaoxing County, reaching 574 tons, accounting for “half of the country’s total cotton imports” in the same period; 544 tons of cotton from India accounted for 48.7%. Industry analysts believe that since the beginning of this year, with the rapid recovery of the downstream textile and garment industry and the decrease in domestic cotton production in the previous year, the cotton supply and demand gap in Shaoxing County textile enterprises has expanded, while the cotton prices in the international market have been more obvious than the domestic market in the same period. Import willingness increases. “These factors have led to a significant increase in cotton imports in Shaoxing County, and prices have also risen,” said the person in the industry.

According to the officials of the Shaoxing Customs, the import of the original cotton was levied by the Indian government in April this year and the registration of the cotton export was suspended. From April to June this year, the monthly import of cotton in Shaoxing County was suspended and no cotton was imported for three consecutive months. The suspension of printing cotton exports has made Shaoxing County's already tight cotton supply worse. However, according to the “Business Chronicle” of Pakistan quoted by the Indian government on August 18th, the Indian government will cancel the cotton export license system and replace it with the export registration procedure. The above new policy will take effect on October 1 this year. This move is expected to ease the supply of cotton in Shaoxing County and stimulate the sharp increase in cotton imports in the fourth quarter of this year.

Since the cotton trade in the international market is completely in the seller's market this year, the seller's default and the decline in the quality of the cotton are more prominent. Therefore, the Shaoxing Customs reminded the cotton importing enterprises of Shaoxing County to continue to adhere to the diversification strategy of cotton imports in the near future, timely pay attention to the early warning information issued by relevant foreign trade related departments and trade associations, avoid trade risks, and at the same time strengthen the quality inspection of imported cotton, and prevent Due to the problem of cotton raw materials, the quality of textile and garment products in Shaoxing County was affected.

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