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Cotton export to Intl market on a rampant rise

04
Apr '08
Lower prices of domestic cotton against the international prices have led to increased rate of exports which stood at about 6 million bales for the period 2007-08.

Although prices of domestic cotton are ruling at Rs22,300-22,600 per bale, these are relatively lower by around Rs2,000 per bale compared to the prices prevalent in America, China and Africa due to decline in world production.

Since demand from the overseas market depicts an unceasing growth, exports from India are likely to further increase to 8.5 million bales by September 2009.

India signed an export commitment of 7.2 million bales of which 6 million bales have already been exported before March 31, 2008. In contrast to the present figures, the total exports stood at about 5.9 million bales in 2006-07.

While commitment for exports to China stood at about 3.8 million bales, supplies to Pakistan have been inked for 1.8 million bales.

The contracted exports to Bangladesh and Far East are posted at 0.7 and 0.9 million bales respectively.

Of the 31.6 million bales estimated for 2007-08, 29.3 million bales have already arrived in the market while the remaining 3.1 million bales stood unsold as on March 31, 2008.

Gujarat known to be the largest cotton producing state of India exported around 3.9 million bales which will go further up to touch 4.5 million bales in the upcoming months.

As compared to this in 2006-07, Gujarat exported around 3.4 million bales. Presently, the state's estimated cotton production is nailed at 11.50 million bales of which 10.10 million bales have already entered the market.

Speaking at a function on 'Growth Accelerators for Gujarat' organized by Confederation of Indian Industries (CII), Mr Ravi Mohan, Head of South Asia, Standard and Poors (S&P) stated, “Globally prices of cotton are ruling higher and the demand for cotton grown in India is buoyant in the overseas markets. This will keep the prices of cotton in the domestic market at a higher level”.


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