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India’s cotton exports are likely to remain flat at about 10 million bales (170 kg per bale) in the 2013-14 season, due to lesser demand from China, according to a government official.
China is the biggest importer of the Indian natural fibre. Cotton season runs between October and September.
“In the 2013-14 cotton season, the natural fibre exports are expected to remain flat at 10 million bales owing to lesser demand from China as it is already sitting on a huge inventory of cotton,” the official said.According to the recent estimates of the Cotton Association of India (CAI), production is estimated to be higher at about 37.2 million bales in the 2013-14 season against 35.5 million bales in the current year.
“The natural fibre output is expected to be higher this time on account of good and timely rains, particularly in cotton growing states, which would result in higher yields,” the official said.
The Cotton Advisory Board (CAB), which is under the Textiles Ministry, has not produced a review report on cotton for the current year or the next year.
CAB, which usually meets every quarter to estimate cotton output, consumption, exports and imports has not provided any review since April, this year.
There won’t be much of a change in cotton acreage and it may remain at the same level of about 11.5 million hectares, the official said. Gujarat, the highest yielding state in India, has seen an increase of more than 10 per cent in acreage on the back of a good monsoon, he said.
As per the CAI projections, the domestic consumption may also remain flat at around 260 lakh bales in the upcoming season. “There has hardly been fresh investments in textiles sector. Thus, the demand is expected to remain stagnant,” the official said. The price of a cotton candy (356 kg) is about Rs 45,000 now.
