Bumper cotton output sends yarn makers & exporters in a tizzy
22 Jun '06
2 min read
Indian cotton is booming what with farmers having reaped a bumper crop, second time in a row.
With this, cotton exports are expeced to steeply rise by 150 percent while imports may taper down by almost 50 percent.
Current year's cotton crop is expected to reach 3,300,000 bales, fairly a significant rise from 10,00,000 bales during 2004-05 season.
Imports on the other hand, are expected to plunge to 400,000 bales in 2005-06 compared to 1,200,000 bales, last year.
Weighing up the present scenario, Textiles Ministry hopes that China would be the top export destination for Indian cotton exports as the Mainland has failed this year to satisfy its supply through sources within the country even as the US is running out of its stocks.
In flow of cotton in Mandis or marketplaces across the country side is still going strong pushing arrivals at 24,400,000 bales in 2005-06, up from 24,300,000 bales in 2004-05 (Oct-Sept), estimates the Cotton Advisory Board (CAB).
Cotton yield has also shot up from 439.7 kgs per hectare in 2004-05 to 467.5 kgs a hectare in 2005-06, which points towards overall increase in the output.
On the downside surprisingly, bountiful crop has not lowered the prices this year and experts believe that strong prices are due to rising domestic consumption and exports.
Increase in domestic consumption and exports have pushed up the prices and profits of our cotton producers D K Nair, Secretary General, Confederation of Indian Textile Industry (CITI) stated.
Domestic cotton spinning industry is performing very well due to increased demand for yarn, as per information gathered by Fibre2fashion Newsdesk - India from CITI sources.
This in turn has pushed up overall demand for cotton, both in domestic as well export markets also, said the source.
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