Cotton exports set to rise, ELS imports to decline
13 Mar '06
2 min read
Though India expects its extra long staple cotton (ELS) import to fall, it is all set for higher exports of cotton.
Competitive domestic cotton prices and sufficient production helped in revising exports to 2.6 million bales.
About 2.3 to 2.5 million bales of Indian cotton contracts have been received for exports of which, about 1.5 to 1.8 million bales have already been exported.
About 60 to 70 percent was exported to China followed by Bangladesh, Pakistan, Taiwan, Indonesia and other Far-East countries.
Almost 70 percent of Shankar-6 (27-29 mm) variety of cotton was exported with prices ranging between 50 to 57 cents per pound.
India's cotton imports in 2005-06 have so far been limited to extra long staple (ELS) cotton and some specialty cottons.
Demand for fine yarn from ELS cotton in the international market was sluggish, which forced 2005-06 imports to be revised to 700,000 bales, according to a US agency.
Prices remained firm in the face of increasing arrivals during January and February due to generation of strong foreign and domestic demand.
Export varieties are priced between 44 to 64 cents per pound making Indian cotton competitive compared to other origins.
Maharashtra and southern states reported heavy rains during October and November causing more damage and production estimate had to be cut back to 23.5 million bales for 2005-06 period.
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