Cotton exports are picking up following exchange-rate stability. China, with buffer stocks, has started increasing imports from India. Demand from Pakistan, Bangladesh, Indonesia and Vietnam has also increased.
So far this cotton year (October-September) six million bales (one is 170 kg) have been shipped and one million are expected to be in a month. Exports are expected to reach 10 million this cotton year. The Cotton Advisory Board (CAB) had projected nine million bales for this cotton year. A year ago, these were 10 million. In cotton year 2011-12, these were 13 million.
Though China in the recent past had decided to increase cotton-yarn imports instead of cotton’s, it has resumed buying to a certain extent from India.
Rupee in one month has stabilised around 62 a dollar, while cotton prices have also remained stable, though elevated, at Rs 43,000 a candy for the benchmark variety Shankar-6, during the period.
“Though China in the last couple of months had started to decrease cotton imports, stability in the rupee revived its purchases from India. Pakistan and Bangladesh have also started to import from India in a big way,” said M B Lal, a Mumbai-based cotton exporter.
Buying from our neighbours have picked up in a big way and also their need for cotton is very high which has caused exports of cotton to pick up.
China is expected to buy small quantities of cotton in the coming months as well and this will also help push exports, as China is the biggest importer of the Indian cotton. “Due to heavy demand from neighbours, this year exports are likely to pick up,” said S P Oswal, chairman of Vardhman Textiles.
Source:- business-standard.com
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