Cotton exports to jump 18% to 65 lakh bales

With an expected cotton bumper crop in 2007-08, the country is likely to export more than half the amount of cotton it has exported in the past nine years (from 1998-99). On the back of strong production, exports could jump 18 per cent to 65 lakh bales (1 bale= 170 kg) against last year's exports of 55 lakh bales.

According to a top official in Cotton Corporation of India, "Cotton exports may go up to around 65-70 lakh bales in 2007-08."

Consumption is exceeding production worldwide. However, India is one of the few countries where production is more than consumption.

East India Cotton Association President K F Jhunjhunwala has also pegged his initial estimate of export figures at 60 lakh bales.

Industry experts said that China would aggressively look for imports as it requires more than 11 million tonnes, whereas its domestic production is at 7.5 million tonnes.

The consumption level in India is also expected to go up by around 10 per cent this year to 245 lakh bales from 230 lakh bales last year.

"The country cannot consume all the cotton produced. Exports have to be there and that too on the upper side this time," said Cotton Textiles Export Promotion Council Chairman Prem Malik.

Acreage under cotton in the US is already down by 20 per cent, which is expected to fall further in the years to come.

In spite of higher production in India, marketmen are bullish about the prices for 2007-08 on the back of good export prospects. Prices have already touched Rs 20,000 a candy (356 kg) in the country. "I am bullish on the cotton market as exports will be on higher side and domestic consumption may reach 250 lakh bales against 235 lakh bales in 2007-08," said Jhunjhunwala.

According to him, this year's cotton output could be 310 lakh bales.