MUMBAI (Commoditiescontrol) - India cotton exports have declined gradually during October-June (2015-16), whereas imports have recorded significant growth same period of current cotton marketing season.
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India has shipped total of around 66.40 lakh bales of cotton from October-June period, while imports stood at 8.03 lakh bales, according to commerce ministry.
The decrease in exports numbers month-on-month were mainly due to sharp rally in domestic cotton prices since April, which has hurt India’s export competitiveness in the international market.
However, the country has shipped more cotton than last year’s level thanks to strong demand from Pakistan and Bangladesh, which has offset poor exports to China so far this season.
India cotton prices has gone past Cotlook Index. Further the discount has narrowed noticeably with China, prompted overseas buyers to source cotton from cheaper alternative destinations like Australia, U.S and West African countries.
Meanwhile the imports numbers have shown decent growth month-on-month due to tight domestic balance sheet amid lower production of 338 lakh bales (170kg each) in 2015-16 followed by uncompetitive domestic prices.
After sharp rally in cotton prices since April domestic mills were forced to source cotton from west Africa, U.S and Australia as well as higher domestic prices were putting stress on their balance sheet.
India’s cotton import during the current cotton marketing year could surged to 20 lakh bales as country has already imported 15 lakh tonnes of cotton so far and has already signed contracts for an additional 400,000 bales, traders and a government official said.
(By Commoditiescontrol Bureau; +91-22-40015533)
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