India’s cotton imports from the US rose over threefold, from March 2019 to April 2019. The main reason is high domestic prices and short supply. A sudden rise in domestic cotton prices has led mills and traders to import the natural fiber. Indian cotton is currently being sold three or four cents per pound higher than the comparable variety in the international market. Imported cotton appears to be attractive due to better yarn realisation, productivity and quality. Mills in south and north India are finding imports to be much cheaper than buying locally and spending huge amounts on transportation from Gujarat or Maharashtra. They don’t have logistic expenses. Rampant adulteration and contamination are also discouraging mills from sourcing cotton locally. A fall in output because of a drought in almost 40 per cent of the country has led to a short supply in the domestic market.

Imports are expected to rise 70 per cent in the current year. So far, India has signed import deals for around 1.8 million bales in the current year. Of this, 8,00,000 million bales to 9,00,000 million bales have already been shipped, and the remaining quantum is likely to shipped between May and July. Imports are also taking place from Africa.