MUMBAI (Commoditiescontrol) - Cotton exports by India in the season 2015/16 are forecast higher at 4.7 million bales (480 lb each), as per USDA’s FAS Mumbai. The body expects export demand of more than 80 percent from Bangladesh, China and Pakistan during the season. Vietnam and Indonesia are likely to contribute to nearly 9 percent and 3 percent of export orders.
Export demand in Indian cotton from neighboring countries is expected to pick-up in the near-term as arrivals are gathering pace. As on 3rd November, 2015, all India cotton arrivals are seen at 1.22 million bales, according to Cotton Corporation of India (CCI) data.
The USDA office has lowered cotton production target at 28.5 million bales, while yield is estimated at 526kg per hectare, attributing whitefly attack on cotton crop in Punjab. Whitefly menace has destroyed nearly 112,000 hectares of planted area in the state.
Domestic consumption for 2015/16 is pegged at 25.3 million bales. While Indian ex-gin prices are lower than the Cotlook A Index, making Indian cotton very competitive, mill demand remains sluggish. Trade sources indicate mill coverage is between 30 and 45 days. Low ex-gin prices coupled with a weakening Indian Rupee is sustaining cotton yarn exports with improved yarn margins since past one month.
(By Commoditiescontrol Bureau; +91-22-40015532)
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