Industrial Cluster: According To The Information Of Australian Cotton Company, Its Annual Cotton Sales Are Completed

According to Australian Cotton Company, almost all of Australia's cotton will be sold in 2023/24. Although some markets continue to face economic challenges, global demand is strong.

Ms. Willis said that in 2023/24, Australia's cotton production exceeded 5.1 million bales, one of the highest in history. Although the wet weather during the harvest period affects the quality parameters of Australian cotton, cotton merchants have managed to sell most of the cotton. At present, a small amount of cotton is still being processed. Buyers are also very interested in this. The unsold cotton will continue to be shipped from November to March.

Willis said that China has become the key market of Australian cotton again. As of August 31, China has occupied 30% of the market share, followed by Vietnam, India, Indonesia and Bangladesh. The return of China as an important buyer is noteworthy, although the current market share is half that of 2019. Although China's demand is weak, Australia's exports to China are still strong.

Willis said that ACSA is also considering assisting the Australian government in negotiations with India. Australia signed an economic cooperation and trade agreement with India in 2022, and is currently working to develop a more comprehensive agreement - the Comprehensive Economic Cooperation Agreement (CECA). At present, Australia can export 51000 tons of cotton to India duty-free, and other goods need 11% import tariff. Data shows that in 2023, the quantity of Australian cotton imported by India will just exceed 61000 tons, of which about 10000 tons will be subject to 11% tariff.

Willis said that considering the distance between India and Australia compared with other cotton markets such as Indonesia and China, the transportation cost is also a factor faced by buyers. The transportation cost to enter India may be four times that to enter China. These are "standard" considerations for international trade, but the increase of 11% tariff makes it more challenging.