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India, the world’s second-biggest cotton producer and exporter, said it expected a record harvest of 40 million bales in this crop year that started on October 1, a government statement said on Monday.
But despite this season’s higher output, exports in the new season are pegged lower at 9 million bales, compared with last year’s 11.8 million bales due to the subdued level of demand expected from top buyer China, a government official said after a meeting of state-run Cotton Advisory Board.
India’s bumper output, rising global inventories and subdued demand from China are likely to pressure global prices.
The government’s output figure is close to the 40.37 million bales that the Cotton Association of India (CAI) estimated in August.
“There is surplus cotton in the world and this is (India’s cotton) going to be further added to the system,” CAI President Dhiren Sheth said.
This year the Indian farmers have sown cotton on 12.6 million hectares compared with 11.7 million a year ago, a government official, who declined to be identified, said.
India will become world’s the No. 1 cotton grower this year, knocking China from the top spot for the first time in over 30 years.
China, the world’s largest cotton importer, accounts for more than 60 per cent of total raw cotton exports from India. The rest goes to Bangladesh, Pakistan and Vietnam.
India’s imports of the fibre are estimated to fall by 35 per cent at 700,000 bales in 2014/15.
