India's cotton exports likely to rise 50% this year to 75 lakh bales this year
India's cotton exports likely to rise 50% this year to 75 lakh bales this year

India's cotton exports likely to rise 50% this year to 75 lakh bales this year

A- A+
Το περιεχόμενο του άρθρου δεν είναι διαθέσιμο στη γλώσσα που έχετε επιλέξει και ως εκ τούτου το εμφανίζουμε στην αυθεντική του εκδοχή. Μπορείτε να χρησιμοποιήσετε την υπηρεσία Google Translate για να το μεταφράσετε.
The exports can see a further boost if Pakistan opens its market for Indian cotton, said Mahesh Sharda, president of Indian Cotton Association. Trade between the two countries has been suspended since 2019.

Indian cotton is the cheapest in the world compared to the US, Brazil, and Australia and hence there is a huge potential to export.

Cotton exports from India are likely to rise 50 per cent this year to 75 lakh bales in the 2020-21 crop year beginning October with revival in global demand from China and Bangladesh in the last one month, said trade bodies.

The exports can see a further boost if Pakistan opens its market for Indian cotton, said Mahesh Sharda, president of Indian Cotton Association. Trade between the two countries has been suspended since 2019.

Indian cotton is the cheapest in the world compared to the US, Brazil, and Australia and hence there is a huge potential to export, he said.

“In the last ten days, China alone has ordered over 10 lakh bales (one bale of 170 kg each) with global prices firming up. Also, Pakistan which has a shortfall in production may import cotton and yarn from India if trade between the two nations resumes. These factors can easily lead cotton exports to 70-75 lakh bales this year compared to 50 lakh bales in 2019-20,” said Sharda. In 2018-19, India had exported 42 lakh bales.

Countries are regularly buying cotton from us as our cotton prices were 15 per cent cheaper than COTLOOK A index, which represents the international raw cotton market price, said Sharda.

Up to February end, India has exported 38 lakh bales of cotton largely to China, Bangladesh and Vietnam and has signed future contracts for 7 lakh bales, said exporter and trader Dharmendra Jain, partner at DP Cotton. “There is regular export demand and we can expect export of five lakh bales to Pakistan which can take total export for this year to 75 lakh bales,” he said

Cotton can be exported from the Attari border in Punjab with mills from adjoining states to fulfil the contracts, said Jain.

Cotton prices gained nearly 5 per cent in one month due to tight supply and high demand from export and mills, said Saurabh Pahade, research analyst at Kedia Advisory. In the last one-year prices have seen a 20 per cent growth. “China's demand for Indian yarn resumed to pre-Covid levels during November-December 2020. Pakistan may allow cotton import from India through land route as prospects of the gradual restoration of bilateral trade ties,” he said.

In the domestic market, cotton prices increased gradually since October from Rs 40,000 per candy of 356 kg to current price of Rs 47,000 per candy, said Atul Ganatra, president, Cotton Association of India.

"The exports in the first 6 months of the season, beginning October have been good, but at this high rate may not sustain. Up to February we have done export shipments around 34 lakh bales and we can expect cotton exports in 2020-21 to be close to 60 lakh bales," he said.

Ganatra said the Indian cotton prices will move in tandem with the global trend which was firm due to a lower crop in the US.


Πηγή: economictimes.indiatimes.com

Tags

newsletter

Εγγραφείτε στο καθημερινό μας newsletter