Cotton exports from the Country are likely to touch seven million bales this marketing year started October 2017, up about 27% from the earlier estimate, due to a surge in demand, particularly from China, as Indian cotton is selling at discount.
With Indian cotton selling at discounts of 7-10 cents per pound, there is demand for all qualities of cotton, traders said. Traders have exported more than 1.5 lakh bales of cotton to China during last 10 days as China took counter actions after the US imposed trade restrictions on the Asian giant.
“We started getting inquiries right from the day the news of US taxes on China was announced,” said Atul Ganatra, President of Cotton Association of India (CAI).
He said the trade’s earlier target was to export 55 lakh bales of cotton, but India had already exported that much till March end. “Now we expect cotton exports to touch upwards of 65 lakh bales,” Ganatra said. “If exports continue at this speed, we can easily export 70 lakh bales.”
As a result of this, India is expected to replace Australia as the second largest exporter of cotton after China by the end of the 2017-18 cotton season, experts said.
Among other major exporters, the USA's cotton is sold out there are concerns about its cotton production as Texas region is facing drought like conditions. Pakistan is now buying cotton.
India has the golden opportunity to gain the lost ground in cotton exports, feel exporters.
Since the begging of the Cotton Year 2017-28 on October 1, 2017, of the total export of 55 lakh bales, India has exported about 6 lakh bales of cotton to China.