Cotton import thru' land port suspended as India halts export

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BENAPOLE, Apr 21 (Agencies): Cotton import through Benapole land port remained suspended from Wednesday morning as India, the world's second-largest cotton grower, halted exports to boost domestic supplies and cool prices that have jumped 27 per cent in the past year.
Local customs cargo superintend Ashraf Hossain said Commissioner AB Jossy under the Indian Textile Ministry in a notice on April 19 put the restriction on export of cotton in the name of controlling their internal marke price.
The restriction will be in force till further notice, it said.
Businessmen apprehended that restriction imposed by India on export of cotton might create a negative effect on Bangladesh's spinning mills.
Masud Rana, Director of Uskat Limited in Dhaka, said there would be big impact in local spinning mills due to the restriction. Importers would have to spend more money in importing cotton from other countries.
Hence, there would be consequences on the country's garment industries, he said.
The annual demand for cotton in Bangladesh is 4.0 million bales. It is imported from Uzbekistan, Russia, USA and India.
Meanwhile, Cotton prices advanced in New York, adding to a 70 per cent rally in the past year, on concern the halt on shipments by the Asian nation may worsen tight global supplies. World inventories will drop 19 per cent in the year through July as demand rises 5.7 per cent, the US Department of Agriculture said on April 9.
The price of long-staple cotton in India has advanced 27 per cent to 7,958 rupees ($179) per 100 kilograms in the past year, according to data on the Cotton Association of India's Web site. Cotton for July delivery added as much as 2.5 per cent to 83.67 cents a pound on ICE Futures US, the highest level for a most-active contract since March 1.
China, the biggest cotton user, may face a shortage because of falling production and reduced global supplies, according to CNCotton.com. Consumption may exceed supply by 3.5 million tons in the year ending Aug. 31, and supply will remain tight next year, Mei Yong, a director at the portal owned by China National Cotton Reserves Corp., said on April 16.