Cotton exports from India are likely to increase by 50 percent to 75 lakh bales in the 2020-21 crop by 12 months, beginning in October with the revival of international demand from China and Bangladesh by the end of one month, listed trade by our bodies.
Exports will see an additional rise if Pakistan opens up its marketplace for Indian cotton, said Mahesh Sharda, president of the Indian Cotton Affiliation. Trade between the two nations has been suspended since 2019.
Indian cotton is the cheapest on the planet compared to the US, Brazil, and Australia, and hence there is a great opportunity for exports, he said.
“In the last ten days, China alone has bought more than 10 lakh bales (one bale of 170 kg each) to bear foreign costs. In addition, Pakistan, which has a production deficit, will import cotton and yarn from India if trade between the two countries resumes. These elements will literally lead cotton exports to 70-75 lakh bales in 12 months compared to 50 lakh bales in 2019-20,” said Sharda. In 2018-19, India exported 42 lakh bales.
Nations are generally buying cotton from us because the quality of our cotton was 15% cheaper than the COTLOOK A index, which reflects the value of the uncooked cotton industry worldwide, said, Sharda.
As of February, India exported 38 lakh bales of cotton mainly to China, Bangladesh, and Vietnam and signed future contracts for 7 lakh bales, said exporter and dealer Dharmendra Jain, DP Cotton’s companion. “There is a popular export demand and we can rely on the export of 5 lakh bales to Pakistan, which can take the total export to 75 lakh bales for 12 months,” he said.
Cotton can be shipped from the border of Attari in Punjab with mills from neighboring states to satisfy the contracts referred to by Jain.
Cotton costs amounted to almost 5% in a single month as a result of tight supply and excessive demand from exports and mills, said Saurabh Pahade, an analyst at Kedia Advisory. 20 percent improvement has been made in the final one-year cost. “China’s market for Indian yarn has revived in the pre-Covid ranges during November-December 2020. Pakistan could allow imports of cotton from India using the land route as a prospect of a gradual restoration of bilateral trade relations,” he said.
In the home market, since October the cost of cotton has gradually increased from Rs 40,000 per sweet of 356 kg to the present value of Rs 47,000 per sweet, said Atul Ganatra, president of the Cotton Affiliation of India.
“Exports during the first 6 months of the season, beginning in October, were fine, but could not be maintained at this unreasonable price. As much as we achieved export shipments in February about 34 lakh bales, and we can count on cotton exports in 2020-21 to be close to 60 lakh bales,” he said.
Ganatra mentioned that the cost of Indian cotton will be transferred in tandem with the worldwide growth of the agency resulting from a declining crop in the US.
