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Market Observation: Brazil Seeks Duty-Free Quotas For Cotton Exports To India
The Brazilian Cotton Farmers Association (Abrapa) said on Wednesday that Brazil is negotiating with India on the request for duty-free quotas for the export of 100000 tons of cotton to the country.
The association said in its report that a team composed of government officials and Brazilian cotton farmers will visit India this week to seek an agreement to implement the quota.
The association said that at present, any cotton exported to India should pay 11% import tax.
According to the US Department of Agriculture, the agreement will promote the expansion of the cotton industry in this South American country. It is expected that Brazil will surpass the United States this year and become the world's number one cotton exporter.
Celestino Zanella, head of Abrapa, said: "We believe that more Brazilian cotton exported to India will supplement their output, especially this year, their output is expected to decline by 7-10%."
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