If the virus does not come under control, the import-export behavior will be lost

Mumbai, Ta. 30 January 2020, Thursday

The spread of coronavirus in China has raised the danger of losing its import-export deal with China in India. Indian rupee exporters are turning to stop export of rupee to China and are looking for new buyers.

The Mumbai-based cotton exporter has decided to halt cotton exports to China and has begun searching for new buyers in markets in Bangladesh, Indonesia, Taiwan and Vietnam, local market sources said. New markets are being explored to cope with the setback in China.

Exporters here fear the loss of business in Ports and banks in China due to the spread of coronavirus. If this happens, export consignments are unlikely to be stagnant and fall into the recession slump.

If the virus contamination is not controlled within a fortnight, it could pose a threat to the worldwide cotton industry. There is currently no need to spread panic. India's cotton exporters have so far shipped around 2-3 lakh bales in China so far this season, and 5 percent of them are still in transit.

Another three lakh bales were expected to be exported by the end of February, but if the virus continues to spread, it may not be done, another exporter said. While rupee prices are currently recovering from a three-year low, any impact on China's exports may push prices back.

Compared to other countries in the world, India's cotton is still competitive in terms of prices in the export market. Therefore, it will not be difficult for Indian sellers to find other buyers in the world, ”said the Cotton Association of India source.

India's cotton production is expected to be around 8 million bales in the last 2-3 months, which was around 8 million bales last season. In addition to exports on the one hand, the import of goods imported from China on the other hand, especially electronic and electronic equipment, is also known to have a huge impact. India's fears of losing millions of dollars in trade due to a drop in imports and exports.

Imports of mobile phones, TVs and components in electronics could be impacted, government sources said. The Wuhan area is a manufacturing hub from where the virus is spreading from China. However, it is a relief to know that the virus is currently spreading out of the area and has not spread to other manufacturing plants, ”said an importer of electronics goods.