Brazil Seeks Tariff-Free Quota On Cotton Export To India

New Delhi, Nov 2 (KNN) Brazil is in talks with India requesting for tariff-free quota of 100,000 metric tons for exports of Brazilian cotton, the Brazilian cotton farmers association (Abrapa) said on Wednesday.

As per the statement, a team of government officials and Brazilian cotton farmers is visiting India this week.

They will be negotiating 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.

(KNN Bureau)