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India's cotton exports to increase on new arrivals
Nov '11
The export of cotton from India is likely to increase with the arrival of new crop in the market. Delayed crop and delay in arrival because of rains in the north has led to slower arrivals this year.

“As of now, around 2.2 million bales (1bale = 170 kg) of cotton have arrived as against the arrival of 2.8 million bales during the same period last year. But arrivals will pick up in the coming weeks,” Mr. SV Arumugam, Chairman, Confederation of Indian Textile Industry (CITI) told fibre2fashion.

Speaking about the estimated harvest of cotton crop, he said, “Cotton Advisory Board had assessed the crop for this year at 35.5 million bales. After that, there has been some damage to the crop. However, I still expect the crop to be around 35 million bales this year.”

“Globally, there is expectation of a bumper crop and consumption is unlikely to keep pace. With a good Indian crop also, there will be sufficient quantity for domestic consumption. Hence, some decline in cotton prices from the current levels is quite likely, once arrivals pick up. However, I do not expect any huge decline in prices,” he commented.

“The twin reasons – increase in new arrivals and a slight decline in prices – will boost cotton exports. I expect some export demand for cotton and free exports of cotton under Open General License (OGL) facility will help traders to tap global demand fully this year,” he opined.

The CITI Chairman added, “Pakistan may not need much of our cotton this year since its own crop is projected to be good. China and Bangladesh will be our major cotton export markets.”

Fibre2fashion News Desk - India

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