Raw cotton export from the country has reached an all-time high of 90 lakh bales in the current marketing season that ends in September 2008, exceeding the estimate made by Cotton Advisory Board (CAB) last month.
Against the CAB estimate of 85 lakh bales, the country has recorded total export of 90 lakh bales of raw cotton for the current season thanks to good demand for Indian cotton by China and other Asian countries (Pakistan, Bangladesh, Indonesia and Japan) coupled with depreciating rupee value against dollar over the past three months, according to trade estimates. Last year, the country exported about 58 lakh bales for the 2006-07 season.
?Bulk of export shipments made this year is of Shankar 6 variety. Majority of cotton mills have had covered their entire requirement for export in the beginning of the season at a time when prices were low due to strong buying enquiries from Chinese buyers,? a leading exporter of cotton told FE.
In the beginning of the season, Shankar-6 cotton prices were quoted around Rs 19,000-20,000 per candy. Now, prices have gone up to Rs 25,000-25,500 per candy on strong buying from domestic mills and exporters.
?With depreciating rupee value against dollar and soaring cotton prices, leading mills have exported good amount of raw cotton to China. I think China bought about 60% of our total exports this year,? a local trader said.
In May 2008, the CAB has further revised its export estimate to 85 lakh bales (each of 170 kg) from earlier estimate of 65 lakh bales for the current season.
The CAB also revised its production estimate at 315 lakh bales from earlier estimate of 310 lakh bales for current season. Of which, total cotton arrivals estimated by the Cotton Corporation of India (CCI) are placed at 297.70 lakh bales as on June 14 as against 256.90 lakh bales by the same period last season, showing an increase of 16% over the same period last year.