Mumbai: Indian cotton exports will drop 36% in 2021-22 from last year, because domestic demand has increased amid limited supplies after carry-forward stocks almost two from last year, industrial officials said on Thursday.
The lower exports of the largest cotton producers in the world can support global prices, which jump to the highest level in a decade on strong demand from Chinese top consumers.
“Exports can fall to 5 million bales in the new season because local demand increases,” Sumeet Mittal, General Manager for Indian cotton businesses at Louis Dreyfus Company, said in a webinar organized by the Indian cotton association.
The country exported around 7.8 million bals in 2020-21, the highest in eight years, because the Cotton Corporation of India was constantly sold from warehouses maintaining competitive Indian prices, he said.
Higher exports and local demand have expired in bringing a forward stock to 6.5 million bales in the new season which began on October 1, from 12.5 million bales a year ago.
A good demand from local factories and rally at a global price has raised domestic prices to a high record this week, tapered Indian advantage has another supplier.
“Good quality cotton is not available at this time for export.
From November, good quality cotton supplies will improve, and prices may drop due to supply pressure,” said a dealer based on Mumbai with a global trading company.
The leading cotton producer countries including Gujarat, Maharashtra, Telangana and Andhra Pradesh received heavy rainfall in September.
Production in the new season can fall when the rainfall is very affected by the initial initial soup in all major producing countries, said Chirag Patel, chief executive at the exporter of Jaydeep cotton fiber Pvt Ltd.
And the quality of plants will be influenced by rainfall.
Cotton harvested in the first election is likely to be of poor quality.
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