EW DELHI: Indian cotton exporters have cancelled orders for around 25,000 bales and postponed shipments of about 200,000 bales by up to a month after a supply shortage pushed up local prices, industry officials said recently.
The move by the world's biggest cotton producer is likely to help rival suppliers like Brazil, the United States and some African Countries boost exports, with some India textile mills even starting to import cheaper fibre from overseas.
"Limited supplies in spot markets forced some exporters to delay shipments. They are delaying shipments by 15 days to one month," said Chirag Patel, Chief Executive of Indian Exporter Jaydeep Cotton Fibers.
India has exported around 2.5 million bales so far in the 2016/17 season that started on Oct. 1. In 2015/16 India exported 6.9 million bales, but this year exports could fall 28 percent to 5 million bales, said a senior official with Khimji Visram & Sons (KVS), a Mumbai-based exporter.
"Exports will pick up only if Indian prices come in line with international prices. If we are not competitive, exports will be limited. It could be even less than 5 million bales," the official said.
Source: Dailyshippingtimes.com
