Late demand from Bangladesh seen pushing Indian cotton exports up 67%
Delay in arrival of shipments from US, Brazil, triggers demand for Indian natural fibre from mills in Bangladesh
India's cotton exports for the 2023-24 season, scheduled to end in September, are projected to increase by over two-thirds due to rising demand from mills in Bangladesh.
The Cotton Association of India (CAI) expects shipments to reach around 26 lakh bales (170kg each) – a 67.7% increase from the previous season's 15.5 lakh bales, reports the Hindu Business Line.
"Bangladesh mills are buying Indian cotton as their import shipments from the US and Brazil have been delayed. Monthly about 1-1.5 lakh bales are being exported to Bangladesh," Atul Ganatra, president of CAI, told Business Line.
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Bangladesh gets cotton from India delivered in about five days by road.
In its recent meeting, the CAI revised the pressing estimates for 2023-24 at 317.70 lakh bales, up from 309 lakh bales in February.
The increase has mainly come from Central India, where farmers are seen off-loading their old stocks.
However, the pressing estimates for the current season are still lower than the previous year's 318.9 lakh bales.
The CAI president attributed the increase in pressing figures to the carry-forward stocks coming into the markets. As of May-end, about 296.53 lakh bales have been pressed.
