Overall cotton shipments are likely to cross 7 million bales in the ongoing 2017-18 marketing year (October-September). Already 6.2 million bales have been exported till May 2018, it said.
India's cotton exports are expected to jump 43 per cent to 10 million bales (of 170 kg each) in the 2018-19 marketing year on strong overseas demand, especially from China, according to industry body CIA.
Overall cotton shipments are likely to cross 7 million bales in the ongoing 2017-18 marketing year (October-September). Already 6.2 million bales have been exported till May 2018, it said.
"The demand for Indian cotton is high as prices are almost 10 per cent lower than the international prices," Cotton Association of India (CAI) President Atul Ganatra told PTI.
Indian cotton is quoted at Rs 46,500 per bale in the spot market, much lower than Rs 54,000 per bale in the US and Rs 58,000 per bale in Australia, he said.
Therefore, China - the world's second largest producer - has signed an advance contract for 5 lakh bales of new cotton crop from India for delivery in November-December of the 2018-19 marketing year. Ganatra said total cotton exports to China could increase to 30-40 lakh bales in the next marketing year from 10 lakh bales this year as the crop in the neighbouring country is pegged lower and its buffer stock was also getting exhausted.
Out of India's total cotton shipment of 6.2 million bales undertaken till May of this marketing year, 20 lakh bales have been exported to Bangladesh; 10 lakh bales to China; 12-13 lakh bales to Vietnam; 11-12 lakh bales to Pakistan; 7-8 lakh bales to Indonesia and rest to Sri Lanka and others, CIA said.
The industry body has revised upward the country's cotton output by five lakh bales to 36.5 million bales for the 2017-18 marketing year taking into account higher yields.
India is the world's largest cotton producer and second-largest exporter. Gujarat, Karnataka, Andhra Pradesh, Madhya Pradesh and Tamil Nadu are main cotton growing states.