• Selling practices

    Chapter 6 - Market profiles - Indonesia 

    Prices are ruled by the international market. Agents send daily quotations to the mills; the mills compare various such quotations from different agents and place a bid with an agent depending on the competitiveness of the quote, their prior working relationship with the agent, payment terms, etc. Generally terms are based on L/C at sight, or on a certain amount as advance payment and the rest by telegraphic transfer. However, there are many different ways of arranging payment, depending on how well the buyer and seller know and trust each other. The bid thus received from the buyer is sent to the shipper and with due negotiations a deal is struck to be executed in accordance with their agreed terms.

    Besides forward sales at fixed price, cotton may also be sold on the basis of New York Futures options for forward shipment.

    Indonesian importers generally follow International Cotton Association (ICA) rules and contracts. 
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    Cotton Exporter's Guide

    Brochure - African cotton promotion
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