USDA announces limited global import quota for Upland Cotton

The Department of Agriculture today announced a limited global market quota that will allow additional U.S. imports of up to 98,143,053 pounds (44,516,940 kilograms) of upland cotton. .

The 90-day effective period of this quota starts August 1, 2011, and ends October 29, 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 July 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 exceeded 130 percent of the average price for the July 2008 through June 2011 period.

The 1949 Act further requires that if a limited global import quota has been established during the preceding 12 months, the amount of the quota next established shall be the smaller of 21 days of domestic mill consumption at the seasonally-adjusted average rate of the most recent three months for which data are available, or the quantity required to increase the supply to 130 percent of the demand. The quantity of upland cotton established by this limited global import quota is based on domestic mill consumption for the April through June 2011 period. The limited global import quota for upland cotton is not specific as to staple length or country of origin.

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.