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Indian cotton exports to dive 41% in 2014-15 season
Apr '15
Cotton exports from India are expected to fall 41 per cent over 2013-14 to a five-year low of 7 million bales (1 bale=170 kg) in the 2014-15 season, which is also down from 9 million bales forecast last October.

Speaking to reporters, textile commissioner, Kiran Soni Gupta said, Indian raw cotton exports may fall 41 per cent to a five-year low of 7 million bales in this season due to China limiting its purchases.

Gupta said India will have to hike exports to countries like Bangladesh, Pakistan and Vietnam that combined together account for about 40 per cent of total Indian cotton exports.

“Lower prices for Indian cotton may help boost shipments to these markets, though demand in China, which used to account for 60 percent of the exports, was not encouraging,” Gupta informed.

"Since Indian cotton is priced at 65 cents per pound as against 75 cents in the international market, there is a good chance to enhance exports to other markets," Gupta added.

Compared with the 2013-14 season, Indian cotton output in 2014-15 is also expected to be down by 800,000 bales at 39 million bales and exports are expected to dive steeply by 41 per cent year over year.

“This was primarily due to delayed monsoons due to which sowing was delayed and also from erratic rains in parts of the country,” Gupta observed.

According to the Cotton Advisory Board (CAB), which compiles figures related to cotton production in India, the 2013-14 cotton crop stood at 39.8 million bales and the forecast for the 2014-15 crop was at 40 million bales.

Cotton production has declined despite acreage under cotton increasing to 12.97 million hectares in 2014-15 as against 11.96 million hectares in 2013-14.

Gupta said production and the area under cotton during 2015-16 is likely to remain similar to the ones in 2014-15. (AR)

Fibre2fashion News Desk - India

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