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India’s cotton imports likely to be lower than estimated

22 Mar 2013 Evaluate

India’s cotton import is likely to decline to 1.5 million bales this year against earlier estimation of 2 million bales, since expected sales from government stockpiles will limit the demand for overseas supplies. It is reported that India has about 2.8 million bales of stocks.

Earlier, it was estimated that cotton imports could jump two-thirds to more than 2 million bales (340,000 tonnes) in 2012/13, since a seasonal output slowdown and stock-building push domestic prices higher in the world's second-largest producer. However, with the state-run Cotton Corp of India offloading stocks in the open market, India's cotton imports are not going to be that much now.

The government has also faced calls from mills to sell down in order to cool soaring prices. The textile ministry has asked the government to check hoarding by traders leading to artificial scarcity and high prices.

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