With strong overseas demand especially from China, the industry body Cotton Association of India (CAI) has said that India’s exports of cotton are expected to surge 43% to 10 million bales (of 170 kg each) in the 2018-19 marketing year. It also said that overall cotton shipments are likely to cross 7 million bales in the ongoing 2017-18 marketing year (October-September). It added that already 6.2 million bales have been exported till May 2018.
As per the industry body data, out of the country’s total cotton shipment of 6.2 million bales undertaken till May of this marketing year, 20 lakh bales have been exported to Bangladesh; 10 lakh bales to China; 12-13 lakh bales to Vietnam; 11-12 lakh bales to Pakistan; 7-8 lakh bales to Indonesia and rest to Sri Lanka and others. Besides, it has revised upward the country's cotton output by five lakh bales to 36.5 million bales for the 2017-18 marketing year taking into account higher yields.
CAI President Atul Ganatra has said that the demand for Indian cotton is high as prices are almost 10% lower than the international prices. Besides, Indian cotton is quoted at Rs 46,500 per bale in the spot market, much lower than Rs 54,000 per bale in the US and Rs 58,000 per bale in Australia. So, China - the world's second largest producer - has signed an advance contract for 5 lakh bales of new cotton crop from India for delivery in November-December of the 2018-19 marketing year.
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