India'S Cotton Exports May Decline Due To Increased Demand

2021/10/8 14:32:00 0

India's cotton exports in 2021 / 22 may fall 36% year-on-year as domestic demand increases, industry officials said on Thursday.

Reduced Indian cotton exports may help support international cotton prices. Previously, strong boost by China's demand, cotton prices jumped to a decade high.

"Cotton exports are expected to drop to 5 million bales in the new year as domestic demand increases," sumeet Mittal, India cotton business manager at Louis Dreyfus, said in a webinar organized by the cotton society of India

India's cotton export volume in 2020 / 21 is about 7.8 million bales, which is the highest level in eight years. India's state-owned cotton company continues to stock out, making India's cotton price competitive.

The increase in exports and the country's domestic demand led to a drop in initial cotton stocks to 6.5 million bales in the new year, down from 12.5 million bales in the same period last year.

Good demand from local cotton enterprises and the rise in international cotton prices have boosted India's domestic cotton prices to a record high this week, reducing the superiority of Indian cotton over other cotton producing areas.

"There is currently no quality cotton to export. From November, the supply of high-quality cotton will improve and prices may fall due to supply pressure," said a Mumbai based trader from a multinational trading company

Major cotton producing states, including Gujarat, Maharashtra, tran Gana and Andhra Pradesh, experienced heavy rainfall in September.

Chirag Patel, chief executive officer of jaydeep cotton fibers PVT Ltd, said production could fall in the new year as rainfall severely affected early sowing crops in all major producing states.

"Crop yield and crop quality will be affected by rainfall. The quality of the first picked cotton may be poor."