India’s cotton exports to be down by around 10 per cent to 54 lakh bales (each of 170 kg) from an earlier projection of 60 lakh bales. Not surprising, considering the Indian cotton is no longer the cheapest in the world after a jump in domestic prices.
Atul Ganatra, President, The Cotton Association of India (CAI), said that Indian cotton is no longer the cheapest in the world as its price has increased from Rs. 38,000 per candy of 356 kg each to Rs. 41,500, while the international prices have declined by about 4 per cent.
Earlier in its initial estimates, the CAI had projected cotton exports to be 20 per cent higher this year (1 October 2020 to 30 September 2021). Notably, last year, India exported 50 lakh bales of exports.
The CAI has retained its import projections at 14 lakh bales for the year.
The cotton stock held by mills in their godowns, as on 30 November 2020, is estimated at 40 lakh bales, which is equivalent to an average 43-day cotton stock.
Various agencies like CCI, Maharashtra Federation, MNCs, Ginners and MCX are estimated to have stock of about 91.57 lakh bales as on 30 November. Thus, total stock held by spinning mills and stockists as on 30 November is estimated at 131.57 lakh bales.
The CAI has retained the overall crop size at 356 lakh bales for the year 2020-21.
The overall cotton consumption is estimated at 330 lakh bales for the year of which about 57.5 lakh bales has been consumed during the first 2 months of the year.
It is also pertinent to mention here that it was being said that cotton exports are likely to jump 40 per cent in 2020-21 to 7 million bales, the highest in 7 years. Depreciation of the rupee and a rally in global prices have allowed exporters to clinch contracts.
