Cotton Im­ports Up 20% Since Oc­to­ber

The Economic Times - - Finance & Commodities - Jayashree.Bhos­ale @times­group.com

Pune: In­dia’s cotton im­ports have been in­creased 20% since Oc­to­ber fol­low­ing fears of lower sup­ply due to de­mon­eti­sa­tion. How­ever, with more cash be­ing in­jected into the econ­omy, crop ar­rival has im­proved sig­nif­i­cantly, par­tic­u­larly in Gu­jarat.

Atul Asher, hon­orary sec­re­tary, In­dian Cotton Fed­er­a­tion, said In­dian traders and mills had con­tracted im­ports of 7 lakh bales (one bale is 170 kg) in the five months since Oc­to­ber 1, 2016, the start of the cotton year.

“This is higher by 20% over the same pe­riod of the pre­vi­ous year. To­tal cotton im­ports for 2016-17 will not be less than the pre­vi­ous year,” Asher said.

Cotton prices were at record high lev­els in July-Au­gust, just be­fore the har­vest of the new crop. It had fallen to 38,000/ candy as the new har­vest hit the mar­ket and was 39,000/candy at the time of de­mon­eti­sa­tion. Cur­rently, cotton prices are at

43,000/candy and are ex­pected to de­cline to 41,000/candy in the next month or two.

The Cotton As­so­ci­a­tion of In­dia has pro­jected In­dia’s 2016-17 cotton pro­duc­tion to be 341 lakh bales, while the Gov­ern­ment of In­dia has pegged it at 321 lakh bales.

“Fall in cotton ar­rivals post­de­mon­eti­sa­tion was so se­vere that we were afraid that pro­duc­tion fig­ures could go down to about 300 lakh bales,” said Dilip Pa­tel, pres­i­dent, All Gu­jarat Cotton Gin­ners As­so­ci­a­tion.

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