Lower rains to hamper India's cotton output & exports: CAI
India’s cotton production in 2018/19 is likely to fall 4.7 percent from the previous season to 34.8 million bales, as scant rainfall is expected to squeeze crop yields, the head of a leading trade body said recently. The drop in output could limit exports from the world’s biggest producer of the fibre amid rising demand from top consumer China and in turn support global prices, which are hovering near their lowest level in more than nine months hit last week.
“In Gujarat, we are expecting a big drop in production due to dry weather,” said Atul Ganatra, President of the Cotton Association of India.
Gujarat and Maharashtra account for more than half of the Country’s total cotton production.
“Due to less production exports are likely to reduce and import is likely to increase,” he said.
Pakistan, China, Bangladesh and Vietnam are key buyers of Indian cotton.
In 2017/18, India exported 6.9 million bales of cotton.
Demand for Indian cotton is robust this year from China as a trade war is prompting the world’s top consumer to avoid imports from the United States.
Source :- Dailyshippingtimes.com