Brazil negotiates for tariff-free quota to export cotton to India

Brazil is negotiating with India a request for tariff-free quota of 100,000 metric tons for exports of Brazilian cotton to the Asian nation, according to a statement from the Brazilian cotton farmers association (Abrapa) on Wednesday.
 

The association said in the note that a team of government officials and Brazilian cotton farmers is visiting India this week, seeking to seal a deal to have that quota implemented.
 

Currently, any cotton exports to India pay an import tax of 11%, the association said.
 

A deal would be a boost to an expanding cotton industry in the South American country, which is expected to surpass the U.S. this year as the world's No. 1 cotton exporter, according to the U.S. Department of Agriculture.
 

"We believe that a larger amount of Brazilian cotton in India would be complementary to their production, particularly this year when their crop is expected to fall from 7% to 10%," said Abrapa head Celestino Zanella.