Cotton exports manage to leap across Great Wall of China

Indian cotton exports to China got a perfect start in 2006, reporting an exponential rise of almost 3,000 per cent in January emerging as the second largest exporter to the country after the US.

In volume terms, cotton exports clocked 43,073 tonne in January, or about 2.5 lakh bales. The US was the biggest exporter with 76,479 tonne but its increase was marginal at 50 per cent. Uzbekhistan was the third largest exporter with 2, 595 tonne.

India recorded the third highest export growth rate in a year, behind Paraguay with almost 9,000 per cent and Australia with 3,500 per cent.

"China has for some time faced a deficit in its cotton production and has been sourcing from many countries including India, the US, Pakistan and Australia," said an industry observer.

But is India feeding its main competitor? "If we don't, others will. Now it is a very global market and we have become competitive in our pricing too," he said.

India is the third largest cotton producer in the world after China and the United States. The country accounts for 12 per cent of world production and 20 per cent of global cotton area.

Cotton production in the next financial year starting April 2006 is expected to touch last year's level of almost 20 million bales. Export from the country, however, has been steadily increasing from 0.80 million bales in 2005 and is set to cross 2 million bales this year.