Cotton Export Surge for India as Bangladesh Mills Ramp Up Buying

New Delhi, Jun 19 (KNN) India's cotton exports are projected to jump by over two-thirds in the 2023-24 season, fuelled by soaring demand from mills in neighbouring Bangladesh, according to the Cotton Association of India (CAI).

Export shipments are forecast to reach around 4.42 million bales (of 170 kg each) for the season ending in September, a striking 67.7 per cent rise from the previous year's 2.64 million bales.

"Bangladesh mills, operating hand-to-mouth, are buying up Indian cotton as their import shipments from the U.S. and Brazil have been delayed," said Atul Ganatra, President of CAI. "They're securing around 170,000-255,000 bales per month from India by road, with deliveries arriving in just 5 days."

The surge in exports coincides with CAI's upward revision of India's cotton production estimates for 2023-24 to 54.01 million bales, up from 52.53 million bales projected in February. The increase stems largely from farmers offloading old stocks in Central India.

While production lags last season's 54.15 million bales, India's overall cotton supply of 61.71 million bales eclipses the previous year's 60.41 million due to larger imports and carry-forward stocks hitting the markets.

Mill consumption is pegged higher at 17.76 million bales for the non-MSME sector and 5.39 million bales for MSMEs.

With non-textile use steady at 2.72 million bales, CAI estimates total demand at 53.99 million bales, leaving ending stocks trimmed to 3.49 million bales.

"Capacity utilisation at spinning mills averages around 90 per cent, with North and Central India at full capacity and the South at 80 per cent," Ganatra noted.

As the global textile supply chain rebalances, Bangladesh's hunger for Indian cotton underscores the fibre’s rising export prominence for the subcontinent's production powerhouse.

(KNN Bureau)