Ahmedabad: riding a strong demand from foreign markets, cotton exports from the country is estimated to rise at 77 lakh bal (one bale equivalent to 170kg) in 2020-21, the highest in the last seven years.
Previous exports reached a height of 112 lakh bal in 2013-14, industrial players said.
Being the largest cotton producer in India, the contribution of Gujarat against total exports has 40-45%.
The Indian Cotton Association (CAI) recently raised estimates for Indian cotton exports with 5 lachh bal-based export delivery data provided by exporters.
The Apex Agency of Indian Cotton Trade has now pegged exports at 77 lakh bal, which will be 54% higher than 50 lakh bals exported in the 2019-20 cotton season.
About 70 lakh bal has been sent on July 31.
According to CAI data, the export of cotton from the country stands at 42 lakh bal, 69 lakh bal, 63 lakh bal, and 72 lakh bales in fiscal 2019, 2017, 2017, 2018, 2017, and 2016.
strong demand coupled with low prices cotton India in the international market encourages cotton exports.
“There is strong demand for our cotton from Bangladesh, Vietnam, Indonesia and China,” said Arun Dalal, cotton-based cotton broker.
The price of Indian cotton remains Rs 2,000-2,500 per candy (one candy weight 356kg), which is lower than international prices throughout the year.
“Ofttake cotton from overseas buyers increases after strong demand for cotton yarn, which offers a good margin for thread manufacturers,” said Nirav Patel, a cotton exporter.
“Because our cotton is cheaper, importers turn to India for cotton imports.” The surge in demand, however, has increased the price of cotton with quality export cotton in Rs 55,000 to RS 56,000 per sweet, industrial players said.
Cai has projected 93.50 lakh racing cotton output for Gujarat for 2020-21.