Mumbai: India’s Cotton Industry officials said on Thursday that exports in 2021-22 may decline by 36 per cent from a year ago, as domestic demand picks up amid limited supply after carry-forward stocks nearly halved.
Lower exports from the world’s largest cotton producer could support global prices, which rose to their highest level in a decade on strong demand from top consumer China.
Exports may fall to 5 million bales in the new season as local demand picks up. Sumeet Mittal, General Manager of India Cotton Business Louis Dreyfus CompanySaid in a webinar organized by the Cotton Association of India.
The country exported around 7.8 million bales in 2020-21, the highest in eight years, as state-run Cotton Corporation of India They are continuously sold from their warehouses keeping the Indian prices competitive, he added.
Higher exports and local demand have pushed forward stocks to 6.5 million bales in the new session that began on October 1, from 12.5 million bales a year ago.
Good demand from local mills and a pick-up in global prices pushed domestic prices to record highs this week, reducing India’s advantage over other suppliers.
A Mumbai-based dealer of a global trading firm said, “Right now good quality cotton is not available for export. Supply of good quality cotton will improve from November and prices may come down due to supply pressure.”
Major cotton producing states including Gujarat, Maharashtra, Telangana And Andhra Pradesh received heavy rains in September.
There may be a fall in production in the new season as the early sown crops in all the major producing states have been badly affected by the rains. Chirag Patel, Exporter Chief Executive Office at Jaideep Cotton Fibers Pvt Ltd.
“Crop yield and crop quality are going to be affected by rains. Cotton harvested at first harvest is likely to be of poor quality.”
Lower exports from the world’s largest cotton producer could support global prices, which rose to their highest level in a decade on strong demand from top consumer China.
Exports may fall to 5 million bales in the new season as local demand picks up. Sumeet Mittal, General Manager of India Cotton Business Louis Dreyfus CompanySaid in a webinar organized by the Cotton Association of India.
The country exported around 7.8 million bales in 2020-21, the highest in eight years, as state-run Cotton Corporation of India They are continuously sold from their warehouses keeping the Indian prices competitive, he added.
Higher exports and local demand have pushed forward stocks to 6.5 million bales in the new session that began on October 1, from 12.5 million bales a year ago.
Good demand from local mills and a pick-up in global prices pushed domestic prices to record highs this week, reducing India’s advantage over other suppliers.
A Mumbai-based dealer of a global trading firm said, “Right now good quality cotton is not available for export. Supply of good quality cotton will improve from November and prices may come down due to supply pressure.”
Major cotton producing states including Gujarat, Maharashtra, Telangana And Andhra Pradesh received heavy rains in September.
There may be a fall in production in the new season as the early sown crops in all the major producing states have been badly affected by the rains. Chirag Patel, Exporter Chief Executive Office at Jaideep Cotton Fibers Pvt Ltd.
“Crop yield and crop quality are going to be affected by rains. Cotton harvested at first harvest is likely to be of poor quality.”
.