Cotton exports gather pace, may touch 2225 lakh bales for 202324

With Indian cotton prices staying attractive for global buyers, exports of the fibre crop have picked up over the past three months to countries such as Bangladesh, China and Vietnam among others. Exports during the first five months of the 202324 season starting October were 15 lakh bales (170 kg), at par with 15.5 lakh bales during the entire 202223 marketing season.

The surge in shipments has forced the Cotton Association of India (CAI), the apex trade body, to raise its export projections for the 202324 season to 22 lakh bales. “Shipments could, possibly, touch 25 lakh bales for the 202324 season,” Atul Ganatra, President, CAI, told businessline.

“Indian cotton prices were lower by about ₹4,0005,000 a candy (356 kg)compared to the international prices during the DecemberFebruary period making it attractive for overseas buyers. About 10 lakh bales were shipped during JanuaryFebruary. Though our prices are at par now with the international, we expect another 2.53 lakh bales to be shipped out this month,” Ganatra said.

DESPITE HIGHER CROP

Based on the latest pressing data received from various stakeholders, CAI has revised upwards the production estimates of the fibre crop for the ongoing marketing season of 202324 by about 5 per cent at 309.70 lakh bales, up from the previous projections of 294.10 lakh bales made during Januaryend. Despite this upward revision, the crop estimates for the 202324 season starting October are still lower than the 202223 production of 318.9 lakh bales.

Per the cotton balance sheet for the period OctFeb in the current 202324 season, arrivals till the endFeb were estimated at 226.82 lakh bales. “About 1012 lakh bales of kapas from the previous season, which was held back anticipating higher prices, found its way to the markets during SeptemberOctober leading to the revision in crop estimates,” Ganatra said.

Cotton imports into the country till endFeb stood at 4 lakh bales and the consumption during this period stood at 137.50 lakh bales. Stock with mills till endFeb is projected at 42 lakh bales, while those with CCI, Maharashtra Federation, MNCs, ginners, traders and exporters is pegged at 65.22 lakh bales.