According to foreign news on October 14, trade organizations and government agencies stated that India’s cotton exports may increase by 20-30% this year due to increased global demand, especially from China, Bangladesh, Vietnam and Indonesia.
Atul Ganatra, president of the Cotton Association of India (CAI), said that compared with the United States, Brazil and Australia, Indian cotton is the cheapest, so CAI expects an increase in purchases from Vietnam, Bangladesh, Indonesia and China. the trend of. As apparel retail sales grow, textile mills in these countries have begun operating at full capacity.
Traders said that domestic demand in India has also recovered, and the production capacity of most textile mills has reached 95%. Ganatra said that Indian cotton prices last week were about 15% lower than the international benchmark price. He expects cotton exports in the 2020/21 season starting in October to reach about 6.5 million bales (170 kg/bag), an increase of 30% from the previous year. .
Cotton Corporation of India (CCI) currently has 5.5 million bales of cotton reserves and is preparing to sign a memorandum of understanding with Bangladesh. PK Agarwal, managing director of CCI, said the company aims to export 1-1.5 million bales of cotton. He said that Indian cotton is cheaper than other global sellers and a large number of buyers are interested in CCI’s e-auction. Besides Bangladesh, buyers from Vietnam and China are also showing renewed interest.
Agarwal said that CCI’s acquisition volume in 2020/21 may increase by 15-20% year-on-year, reaching 13.5-14 million bales. Last season’s cotton production was 31 million bales. Our goal at CCI is to ensure supply of cotton to the domestic market and export excess quantities. This year CCI expects exports to increase by 20% to 6 million bales.
Mahesh Sharda, president of the Indian Cotton Association, said that companies are signing contracts and most of this year’s transactions are expected to be completed in October-November. Apart from Bangladesh and Vietnam, the main orders this year are likely to come from China, which is increasing its cotton reserves. Sharda said that increased demand in domestic and international markets may also boost Indian cotton prices, which can rise from 3,500 rupees to 40,000 rupees per candi. </p
