By admin       2018-04-05

The trade war between the US and China could provide opportunities for Indian oilseed meal, cotton and maize producers in the Asian country’s market, according to companies and traders. “If the export price remains competitive, a small window for agri-exports could open for Indian exporters of oilseed meals - soyameal - and mustard, cotton and maize,” said Prerana Desai, head of research for Edelweiss Agri Value Chain Ltd. “We have some stock and with China the largest consumer and importer, we have a market to tap.” China imposed new tariffs of up to 25% on 106 US products on Wednesday after earlier increasing tariffs on 128 US products, stepping up a trade war between the two largest economies. The US Trade Representative had announced a 25% tariff on 1,300 Chinese products on Tuesday. India, the second-largest exporter of cotton after the US, can benefit, said traders and analysts. Of the 5 million bales of cotton imported by China, 40% was from the US, said industry experts. “With China imposing 25% duty on cotton from the US, we can leverage our position. There is no duty on import of Indian cotton in China and hence we will be cheaper than US cotton,” said Atul Ganatra, president of the Cotton Association of India. In the past, India exported over 40 lakh bales to China compared with the current figure of 6-7 lakh bales. Anand Popat of the Saurashtra Ginners Association said Indian cotton was priced competitively compared with Australian and African cotton.

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