According to foreign news on October 14, trade organizations and government agencies stated that India’s cotton exports this year may increase by 20 - 30% due to increased global demand, especially from China, Bangladesh, Vietnam and Indonesia.

Atul Ganatra, president of the Cotton Association of India (CAI), said that compared with the United States, Brazil and Australia, Indian cotton is the cheapest, so CAI expects an increase in purchases from Vietnam, Bangladesh, Indonesia and China. With the growth of clothing retail, textile factories in these countries have begun to operate at full capacity.

 

According to traders, domestic demand in India has also recovered, and most textile mills have reached 95% capacity. Ganatra said that last week, India’s cotton price was about 15% lower than the international benchmark price. He expects that the export volume of cotton in 2020/21 starting in October will reach about 6.5 million bales (170 kg/bale), an increase of 30% from the previous year.

 

Cotton Corporation of India (CCI) currently has 5.5 million bales of cotton reserves and is preparing to sign a memorandum of understanding with Bangladesh. CCI managing director PK Agarwal stated that the company aims to export 1 to 1.5 million bales of cotton. He said that Indian cotton is cheaper than other global sellers, and a large number of buyers are interested in CCI’s electronic auction. In addition to Bangladesh, buyers from Vietnam and China have renewed interest.

 

Agarwal said that the acquisition volume of CCI in 2020/21 may increase by 15 - 20% year-on-year to reach 1.35 - 14 million bales. The cotton output last year was 31 million bales. CCI’s goal is to ensure the supply of cotton in the Indian domestic market and export excess quantities. This year CCI expects exports to increase by 20% to 6 million bales.

 

Mahesh Sharda, president of the Indian Cotton Association, said that companies are signing contracts and most of this year’s transactions are expected to be completed in October - November. In addition to Bangladesh and Vietnam, this year’s main orders may come from China, which is increasing its cotton reserves. Sharda said that increased demand in domestic and international markets may also boost Indian cotton prices.