Hit by sluggish Chinese demand, India’s cotton export is expected to fall 29 per cent to 7 million bales in the current crop year that ends in September. India has so far exported only 4.5 million bales of cotton this year, according to an official of Cotton Council of India. In the last crop year (October-September) India exported 9.9 million bales.
Exports have slowed down due to higher world stockpiles and sharp decline in demand from China.
The International Cotton Advisory Committee, in a recent report has said that the record volume of cotton stocks has put downward pressure on international cotton prices.
The CCI which procures cotton at the government’s minimum support price from farmers, has procured 8.69 million bales of cotton at the support price as against the target of 9 million bales in the current crop year.
The Cotton Advisory Board (CAB) has forecast a production of 40 million bales of cotton in the current crop year against 39.8 million bales 2013-14.
While cotton exports are falling, domestic cotton mills are facing a severe shortage of raw cotton and have repeatedly urged the CCI to sell its stockpile in the domestic market through e-auctions.