MUMBAI (Commoditiescontrol) - After falling as much as 51 percent in 2014-15, cotton exports by India are likely to rebound by 21 percent to 1.2 million tons in 2015-16, as per International Cotton Advisory Committee (ICAC).
Though reduced buying by China, the world’s top consumer of the fibre, has noticeably depressed the overall Indian export figures in the current season, which is coming to an end shortly. And chances of any rise in the total estimated figures is very unlikely now.
The Chinese government, in its effort to reduce the massive reserve stockpile of around 11 million tons, announced that it would no longer buy cotton for its stockpile. Towards the move, it had cut its import quota to 894,000 tons, upsetting the country’s importers.
Nevertheless, better imports outside China are likely to offset China’s decline. Other overseas consumers such as Bangladesh, Thailand and Vietnam have potential to become the next top importers of Indian cotton.
Vietnam’s textile sector ranked second in attracting Foreign Direct Investment (FDI) with more than $1.12 billion out of the nation's total estimated $5.85 billion worth of pledged investment in the first seven months of 2015, according to the government's Foreign Investment Agency.
Besides, the Cotton Corporation of India (CCI) has so far exported over 1 lakh bales of cotton from its stockpile to Bangladesh in the current season. The government nodal agency has also considered other Asian markets like Thailand for sale opportunities. India exports around 45-50 percent to Bangladesh.
Sometime ago, Textile Minister Santosh Kumar Gangwar announced that India’s textiles export target for 2015-16 has been fixed at $47.5 billion, up 14 percent from $41.6 Billion in 2014-15. He also said the government is encouraging exports through Merchandise Exports from India Scheme (MEIS), which has recently been modified to include the markets of Bangladesh and Sri Lanka.
Cotton exports by the United States are projected to decrease by 9 percent due to lower production there. The U.S. Department of Agriculture (USDA) rated cotton crop in the U.S 11 percent poor/very poor.
In addition, government of Pakistan is planning to recommend a regulatory duty of 10 percent on export of raw and grey cotton.
(By Commoditiescontrol Bureau; +91-22-40015532)
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