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India's Cotton Exports Plunges 36% Till June

2013-7-17

India's cotton exports are estimated to have plummeted by 36 per cent to 9.14 million bales in the first 11 months ended June of the current marketing year, a latest USDA report said.

The country had shipped 13.91 million bales of cotton in the August-June period of the 2011-12 marketing year. One bale contains 170 kg of cotton. The cotton marketing year runs from August to July.

"Preliminary data suggest that exports reached 9.1 million bales through end of June," the US Department of Agriculture (USDA) said in its latest report.

According to trade sources, exports however have started picking up again with major trading firms busy buying at auctions of Cotton Corporation of India (CCI).

Yarn shipments in June are expected to have risen with the rupee devaluation boosting exports. Yarn export registrations for May have risen by more than 21 per cent on a year-to-year basis, trade sources said.

Major exports markets continue to remain China, Bangladesh, and Vietnam, the report added.

The country's domestic consumption is expected to be 28.56 million bales this year, while trade sources indicate that the local demand will continue to remain strong as mills seek to cover their position till September.

There has been a steady demand from yarn manufacturers as exporters look to take advantage of the weaker rupee by exporting at higher margins, it added.

India's cotton production is estimated at 33.8 million bales in 2012-13 crop year (July-June), slightly lower than the last year.

Source:The Economic Times
 
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