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Low prices attract importers of cotton
Dec '09
Raw cotton exports from India are on an upswing since the beginning of the new cotton season and for one good reason. Cotton prices are 5 percent on the downside when compared with those prevailing in the international markets.

Quoting industry sources, the US Department of Agriculture (USDA) says that, "Indian cotton is currently very competitive in the international market, about 5 per cent cheaper, when corresponded with comparable cotton from other origins."

The USDA said, “There has been a big spurt in export registrations for the new crop since October as India shipped 1.92 million bales of cotton between August and mid-November, compared with 325,000 bales in the same period of the previous year.

It added by saying that, "Strong global cotton prices have improved the export prospects for Indian cotton. In the 2009-10 season, exports are likely to touch 6.7 million bales on expectations that the government will not intervene in the current cotton export policy."

According to current market trends, Indian cotton is quoting at 71.5 cents per pound (including logistic cost), against international Cotlook rates of 75.10 cents pound, which has turned India into an attractive destination for buyers from Indonesia, Bangladesh and China.

Fibre2fashion News Desk - India

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