AHMEDABAD: Riding on strong demand from overseas markets, cotton exports from the country are estimated to rise at 77 lakh bales (one bale is equivalent to 170kg) in 2020-21, the highest in the past seven years. The exports had previously reached a high of 112 lakh bales in 2013-14, said industry players.
Being the largest producer of cotton in India, Gujarat’s contribution to the total exports has been 40-45%.
The Cotton Association of India (CAI) recently raised its estimate for India’s cotton exports by 5 lakh bales based on export shipment bookings data provided by the exporters. The apex body of the Indian cotton trade has now pegged the exports at 77 lakh bales, which will be 54% higher than the 50 lakh bales exported in the cotton season of 2019-20. About 70 lakh bales were already shipped as on July 31.
According to the CAI data, the cotton exports from the country stood at 42 lakh bales, 69 lakh bales, 63 lakh bales, and 72 lakh bales in fiscals 2019, 2018, 2017, and 2016.
Strong demand coupled with low price of Indian cotton in the international market pushed up cotton exports. “There was strong demand for our cotton from Bangladesh, Vietnam, Indonesia, and China,” said Arun Dalal, a city-based cotton broker.
The Indian cotton prices remained Rs 2,000-2,500 per candy (one candy weighs 356kg), which were lower than the international prices throughout the year.
“The cotton offtake from overseas buyers increased following strong demand for cotton yarn, which offered good margins to yarn manufacturers,” said Nirav Patel, a cotton exporter. “As our cotton was cheaper, importers turned to India for cotton imports.”
The surge in demand, however, has increased cotton prices with export quality cotton ruling at Rs 55,000 to Rs 56,000 per candy, said industry players. CAI has projected 93.50 lakh bales of cotton output for Gujarat for 2020-21.
