Cotton Imports Up 20% Since October
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.