Australian cotton traders eagerly wait for rise in duty-free quota

Furthermore, Cliff White at Omnicotton Australia added that the market is grappling with price pressure. “That's a consequence of the global economic conditions and the slowdown in economic activity from the consumer's perspective. The demand slump is not limited to India but a global phenomenon." White added, “We all hope that in 2024 economic conditions will improve and therefore, we'll see a bit more demand and improvement in prices."

Australian farmers enjoy the highest yield in cotton and this is projected to continue in 2023-2024. As per International Cotton Advisory Committee data, it is estimated to be at 2,054 kg/ha in 2023-2024. Cliff White stressed, “Other than private players, our government is also involved in the research of various cotton varieties. In addition, climatic conditions in Australia only support certain cotton and farmers are very wary about it.” Further, White takes pride in the efforts of farmers. He added, “There are a very good set of innovative farmers, which makes this possible.”

He added in the last couple of seasons, Vietnam was the number one market. “Obviously, India has started to feature far more significantly. Bangladesh is definitely a developing market for Australian cotton, although they do have constraints in terms of payments at the moment.” This rise has been witnessed because Australia has trade agreements with Vietnam. Further, Australian cotton growers and traders, he said, have been able to diversify “their markets significantly, rather than be over reliant on China”.