USDA Announces Limited Global Import Quota for Upland Cotton

WASHINGTON, May 2, 2011 – The Department of Agriculture today announced a limited global market quota that will allow additional U.S. imports of up to 104,259,811 pounds (47,291,415 kilograms) of upland cotton.

The 90-day effective period for this quota starts May 3, 2011, and ends July 31, 2011. To be counted under this quota, cotton must be imported within this time period.
The Agricultural Act of 1949, as amended, requires the President to establish a limited global import quota whenever the Secretary of Agriculture determines and announces that the average price of the base quality of upland cotton in the designated spot markets for a month exceeded 130 percent of the average price of such quality of cotton in such markets for the preceding 36 months.

In April 2011, the average spot market price for Strict Low Middling (SLM) 1-1/16 inch (leaf grade 4, micronaire 3.5-3.6 and 4.3-4.9, strength 24-25 grams per tex) upland cotton was 181.98 cents per pound, which is 242.8 percent of the April 2007 through March 2011 average price.
The 1949 Act also requires the amount of the limited global import quota to be equal to 21 days of domestic mill consumption of upland cotton at the seasonally-adjusted average rate of the most recent three months for which data are available. The quantity of upland cotton established by the limited global import quota is based on domestic mill consumption for the January 2011 through March 2011 period.

The limited global import quota for upland cotton is not specific as to staple length or country of origin. Any quantities imported are not subject to the over-quota tariff rate of a tariff-rate quota.

The effective period of this limited global import quota may not overlap the period of any special import quota that might otherwise be determined as provided by PL 110-246. Therefore, any special import quota that would otherwise be announced if the U.S. Far East price exceeds the prevailing world market price for a consecutive 4-week period will not be announced or established during the effective period of this special limited global import quota.

USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC 20250-9410, or call toll-free at (866) 632-9992 (English) or (800) 877-8339 (TDD) or (866) 377-8642 (English Federal-relay) or (800) 845-6136 (Spanish Federal-relay). USDA is an equal opportunity provider and employer.

 

More Advocacy Issues

On April 14, 2021, Memphis stakeholders wrote a letter to Chairman Oberman of the Surface Transportation Board expressing the need for assistance in resolving the current inland rail crisis affecting importers, exporters and motor carriers in the area. See the full letter below. Click Here

Read More
 

On March 15, 2021, Mississippi State University published the expected PLC payments for the 2020 year. Please see the link below for more information. Click Here

Read More
 

The link below provides an overview and key takeaways from the Senate Banking Committee hearing to consider Gary Gensler to be a Member of the U.S. Securities and Exchange Commission (SEC). Click Here

Read More
 

The National Cotton Council provided a cotton specific summary of the Quality Loss Adjustment Program and examples. See below. Click Here

Read More
 

Yesterday, the Senate Agriculture Committee held a hearing to consider the nomination of Tom Vilsack to be Secretary of Agriculture. Click below for details from the hearing. Click Here

Read More
 

China Policy and Market Update

January 29th, 2021

In December, China imported 1,629,083 bales (354,691 MT) of cotton, representing an increase of 80.43% month-on-month (m/m), and an increase of 130.9% year-on-year (y/y). The total value was USD $588.82 million, representing an increase of 89.33% m/m, an increase of 117.21% y/y. In 2020, Chinese cotton imports totaled 9,912,346 bales (2,158,159 MT), an increase of […]

Read More