India’s Kotak pauses cotton exports to China
30/01/2020
China’s top buyer of cotton may have to close ports and banks, the Mumbai-based company told Bloomberg news, so Kotak will look for new cotton buyers in other countries — such as Bangladesh, Indonesia, Taiwan and Vietnam — to make up for potential loss of sales to China.
Vinay Kotak, director of Kotak, said there is no need to panic, but that if the virus is not controlled within the next 10 to 15 days, it could pose a big problem for the global cotton industry.
According to Mr Kotak, India-based cotton sellers have already shipped 600,000 to 700,000 bales of 170 kilograms each to Chinese buyers so far this season, about 75% of which is in transit.
He told Bloomberg the additional 300,000 bales expected to ship to China by the end of February might not go if the virus continues to spread.
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