As per Cotton Association of India (CAI) estimates, cotton exports by India are likely to rise by 12 per cent from previous estimate to 4.7 million bales in 2019-20 as a fall in the value of the rupee has made shipments competitive. This could further add pressure on global cotton prices, which are trading near their highest level in more than two months.
Indian could also limit its shipments to rivals such as the United States, Brazil and Australia and divert them to key Asian buyers such as China, Bangladesh and Vietnam. The country sells its cotton at around 62 cents per pound on a cost and freight basis (C&F) to these Asian buyers such as Bangladesh. The country is expected to produce 33 million bales in the marketing year ending September 30, 2020.
