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By
Fibre2Fashion
Published
May 9, 2016
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Rise in domestic prices slashes cotton exports by 10%

By
Fibre2Fashion
Published
May 9, 2016

India’s cotton export is expected to drop by over 10 per cent to 6 million bales in the current year ending September due to rise in domestic prices which have made the fibre uncompetitive in the global market.


India’s cotton export is expected to drop by over 10 per cent. - F2F


In the 2014-15 marketing year (October-September), India had exported 6.7 million bales (of 150 kg each). Bangladesh, Pakistan and Vietnam were among the major export destinations.

"So far, we have exported 5 million bales. No further exports are taking place now because global prices are cooling and domestic prices are on the rise. Total cotton exports would be around 6 million bales in 2015-16," Cotton Corporation of India (CCI) Chairman and Managing Director B K Mishra told PTI.

Cotton prices in the domestic market have increased by Rs 1,000 per candy in the last few days to Rs 34,000-35,000 per candy. "I think the rising price trend will continue for some time till the new crop comes from October," he said.

Mishra said the rates have gone up due to an estimated fall in domestic cotton production to 35.3 million bales in 2015-16 from 38 million bales in the previous year due to drought.
Traders are therefore, not exporting cotton for lack of good margins in the global market and see better prospects in the domestic market, the CCI chief said.

Mishra also said that tuch of the Indian cotton has been exported to Pakistan, which stood at 2 million bales so far this year.

The CCI, which buys cotton from farmers when rates go below the support prices, said it has procured 8,40,000 bales so far this year.

With cotton prices rising, Mishra ruled out any more procurement. Of the total procured cotton, the CCI has already sold 3,75,000 bales and the rest of the stock will be disposed of in the coming months, he said.

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