US said to have offloaded 1.20 crore bales in global market.
India's loss seems to be USA's gain. In the wake of lower cotton exports from India this year, US cotton has managed to find takers in the international market at a time when the demand for the commodity is sluggish across the globe.
As per the data provided by cotton traders, US exports are estimated to be 1.22 crore bales in 2008-09. Internationally US cotton is sold 2 to 3 cent cheaper than the Indian cotton.
Despite drastic fall in domestic cotton prices in the country. "The prices are still higher by Rs. 1,000 to Rs. 1,200 per candy in the global market. As a result, India has not been able to export much this year", said Arun Dalal, Arun Dalal, owner of Arunkumar and Co., an Ahmedabad-based leading cotton trading firm.
Indian cotton is currently traded higher at 58 cent per pound as compared to that average international cotton price is 55 cent a pound."If Indian cotton had found price parity in the export market, US exports would have been lower as quality of our cotton attracts more buyers. Higher prices coupled with financial crisis faced by global textile industry is the main reason for Indian cotton losing ground in the world market", said Kishor Shah, president, Central Gujarat Cotton Dealers Association (SGCDA).
Though US exports in fiscal 2007-08 stood at 1.36 crore bales, the estimate of 1.22 crore bales assumes importance as the international demand of cotton is sluggish and world mill consumption is estimated to decline in 2008-09.
"International buyers are going for cotton from US or African countries due to cost advantage", Arun Dalal added.
On the other hand, Indian exports are likely to plummet to 30-35 lakh bales as against 85 lakh bales of cotton exports in 2007-08. Exports from India have taken a beating as China, Turkey, Egypt and Peru have decided to reduce their cotton imports.
Higher prices has further added to the woes of cotton exporters from the country.
