India is likely to export 6.8 million bales in the 2015/16 season, up 18 per cent from a year ago as demand from Asia is expected to improve, Textile Commissioner Kavita Gupta told journalists.
Higher exports will cap global prices, but raise domestic prices and help bring down government purchases at the minimum support price.India is likely to export 6.8 million bales in the 2015/16 season, up 18 per cent from a year ago as demand from Asia is expected to improve, Textile#
"We are expecting higher demand from Bangladesh, Pakistan and Vietnam. This will offset poor demand from China," Gupta said after a meeting of the Cotton Advisory Board in Mumbai.
In the 2014-15 season Bangladesh surpassed China to become India's top buyer of the fibre after Beijing began cutting import quotas to stimulate demand for domestic cotton after it halted a state stockpiling programme.
In recent years, China has taken more than half of India's cotton exports, propping up Indian prices despite record output. In 2014-15 India's exports dropped 51 per cent from a year ago after China halved imports.
For now, Bangladesh is India's best bet for cotton exports. It is the world's second largest exporter of apparel, behind China. Much of Bangladesh's apparel export is fuelled by cotton sourced from India.
India's production in the new season which started on October 1, is projected to drop 4 per cent from the previous year to 36.5 million bales due to a lower acreage, pest attacks and poor yields because of a prolonged dry spell, Gupta said. (SH)
ALCHEMPro News Desk – India
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