Indian farmers have been urged asked to grow cotton on maximum area as its demand is set to increase in 2018-19 due to various factors. It is likely to increase 43 per cent to 10 million bales (of 170 kg each) in the 2018-19 marketing year on strong overseas demand, especially from China.
In the last few days, traders have exported more than 1.5 lakh bales of cotton to China. Traders said there is demand for all qualities of cotton with Indian cotton selling at discounts of 7-10 cents per pound.
Indian cotton is quoted at Rs 46,500 per bale in the spot market, much lower than Rs 54,000 per bale in the US and Rs 58,000 per bale in Australia. CAI president Atul Ganatra says China has almost exhausted its cotton inventory and will be in the market to import the fibre. India has a good chance, especially with the new duty on imports from the United States.
Out of India's total cotton shipment of 6.2 million bales undertaken till May of this marketing year, 20 lakh bales have been exported to Bangladesh; 10 lakh bales to China; 12-13 lakh bales to Vietnam; 11-12 lakh bales to Pakistan; 7-8 lakh bales to Indonesia and rest to Sri Lanka and others.
According to CAI, India is the world's largest cotton producer and second-largest exporter. Gujarat, Karnataka, Andhra Pradesh, Madhya Pradesh and Tamil Nadu are main cotton growing states.
