US – China trade war can turn out to be Indian agricultural sector’s fortune
The ongoing trade war between the US and China could provide opportunities for Indian agri products, say reports. Indian oilseed meal, cotton and maize can find their way into the rapidly growing Chinese marker if the export prices remain competitive.
China is the largest consumer and importer of the oilseed meals, mustard, cotton, and maize. This opens a new market possibility for Indian traders in the Chinese soil.
China imposed new tariffs of up to 25% on 106 US products on Wednesday after earlier increasing tariffs on 128 US products. This escalated a trade war between the two giants with the US had announced a 25% tariff on 1,300 Chinese products on Tuesday.
Out of the 5 million bales of cotton imported by China, 40% were from the US. India, being the second-largest exporter of cotton after the US, can benefit the rift between the two nations. There is no duty on import of Indian cotton in China and hence Indian traders can leverage their prices competitive.
In the past, India exported over 40 lakh bales to China compared with the current figure of 6-7 lakh bales. On the other hand, the US may also look to buy textile goods from India as the duty it imposed on China garments was about 25%. According to experts, the China - US trade war puts India in a win-win situation.
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