New Delhi: Cotton prices in the domestic market are subdued due to 56.72 percent fall in India's exports to China in 2014-15, Parliament was informed today.
"Export of cotton from India to China declined by 56.72 percent from 61 lakh bales in 2013-14 to 26 lakh bales in 2014-15.
"As a result, there had been sluggishness in the domestic prices as compared to last year," Commerce and Industry Minister Nirmala Sitharaman said in a written reply to Rajya Sabha.
She said cotton policy adopted by China is the major reason for less imports.
China's stock levels have reached over 8,000 million kg and due to this they are importing less, she said, adding "reduction in import quota granted to actual users of cotton thereby discouraged direct import by spinners and encouraged them to buy more of domestic cotton and also from government agencies holding stock".
India is protecting farmers by providing minimum support price.
"India is also looking for export of cotton to the various other cotton deficient countries," she added.
Replying to a separate question on overall exports, she said fall in global demand, decline in commodity prices and dip in oil prices are impacting India's trade.
Contracting for the seventh month in a row, India's exports in June dipped by 15.82 percent to USD 22.28 billion.