Cotton exports may dip by 10% to 6 million bales in current year

The export of cotton is expected to drop by over 10% to 6 million bales in current year ending September. This drop in export is expected as global prices are cooling and domestic prices are on the rise. The country had exported 6.7 million bales (of 150 kg each) in the 2014-15 marketing year (October-September). Major export destinations include Bangladesh, Pakistan and Vietnam.

The domestic prices have increased by Rs 1,000 per candy in the last few days to Rs 34,000-35,000 per candy due to estimates of fall in domestic cotton production to 35.3 million bales in 2015-16 from 38 million bales in the previous year owing to drought.

Cotton Corporation of India (CCI) which buys cotton from farmers when rates go below the support prices has procured 8,40,000 bales so far this year. Of the total procured cotton, CCI has already sold 3,75,000 bales and the rest of the stock will be disposed of in the coming months.