Mumbai, Nov 7: Cotton imports in the country during the recently concluded cotton year 98-99 (October-September) is feared to be substantially higher at around 9.50 lakh bales, while the exports are likely to be much lower at 80,000 bales.According by a review report of The East India Cotton Association (EICA), disparity in domestic and international cotton prices and the general fall in grade and quality of cotton were the two major factors responsible for the spurt in imports.
International prices of cotton remained around 10-15 per cent lower than the domestic prices throughout the season. Moreover, unseasonal heavy rains and increased pest attacks put the quality of cotton in a poor light. Further, due to inadequate attention paid to the maintenance of varietal purity and supply of good quality seed to meet farmers' demand led to deterioration in the inherent fibre properties of a few varieties and hybrids.
As a result several mills, particularly the export-oriented units opted for imported cottonfor manufacturing yarn of superior quality. Though the Cotton Advisory Board (CAB) had placed the import at 8 lakh bales for 1998-1999, it still is almost double the annuity of 4.13 lakh bales imported in 1997-1998.
On the export front, registrations and shipments were far below the released quota during the year mainly due to disparity in the domestic and global prices as explained earlier.
During most part of 1998-1999, world cotton prices displayed a bearish trend chiefly owing to subdued demand from the global textile industry facing a glut in yarn inventories. Drastic curtailment in imports by China was another major factor that kept world prices under pressure.
On the other hand, despite a good crop, cotton prices in India continued to remain at higher levels than the international prices. It is worth noting that at the commencement of the season, centre had released a quota of 5 lakh bales for export in accordance with its long-term policy. As against this, the total export for the season1998-1999 is placed at around 80,000 bales. In addition, 10,000 bales have been shipped from the spill-over quota of the season 1997-1998. Bulk of the shipment against 1998-1999 quota has been of Bengal Deshi-62,000 bales. Out of the 12 marketing federations to which specific quota were allotted, only Gujarat could manage to export at least a small quantity of 1,250 bales against allotment of 55,000 bales. Other federations have no records, or recorded negligible shipments.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.