China looking at importing cotton from Myanmar. China has been importing cotton from the US for 10 years but the ongoing trade war has made China look elsewhere. And Myanmar is a possible source. One reason for the interest is Myanmar does not charge import duties on cotton yet.

China is the world’s largest importer of cotton. China’s demand for cotton could drive prices higher than their current levels, though. This year’s Myanmar’s pre-monsoon cotton yield is much lower than last year’s because there are fewer growers. In Myanmar, cotton is grown only in a few townships.

On the flipside, rising cotton prices could encourage more growers to return to the industry. With higher prices for cotton, more farmers could be expected to start growing cotton later this year.

In Myanmar, cotton is planted twice a year, in February and July, with both seasons lasting four months each. The harvest from both seasons is distributed equally between the local and Chinese markets. However, cotton plant cultivators in Myanmar constantly face difficulties in obtaining seeds and face challenges due to scarcity of labor. Myanmar exported around 4,300 tons of cotton to China in 2016-17 compared to just 1.6 tons in 2013-14.