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Apr 8, 2010
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India's 2009/10 cotton exports seen rising 129 percent

By
Reuters
Published
Apr 8, 2010

By Sourav Mishra

MUMBAI, April 8 (Reuters) - India's cotton 2009/10 exports are likely to rise to 8 million bales, up 129 percent on year, drive by strong demand from China and Bangladesh, a senior government official said on Thurs`day 8 April.



The country had exported 3.5 million bales in 2008/09 and the government initially estimated exports of 5.5 million bales for the year.

But a revival in world economy boosted shipments of the fibre and so far India has exported 5.5 million bales in the year that began in October, said A.B. Joshi, textile commissioner and chairman of Cotton Advisory Board (CAB), a body of government, cotton growers, industry associations, traders and ginners.

"Exports to China has been very good .... about 3.08 million bales or about 56 percent of the exports so far," Joshi said, while Bangladesh accounted for about 15 percent.

World 2009/10 cotton ending stocks will slump almost 20 percent year-on-year because of lower output in top consumer China and increased consumption in India and Turkey among others, influential industry analyst Cotlook said. See [ID:nN18239697]

As of April 8 exporters had registered 7.9 million bales with the government for shipping, indicating exports by the end of September could surpass 8 milllion bales, industry players said.

Joshi said the soaring exports have kept cotton prices firm so far in the cotton year, prodding textile exporters to seek a ban on cotton exports for lower prices at home.

"We have at this stage no plans to ban cotton exports," Joshi said. He also declined comment on market talk of the removal of a 7.5 percent duty concession on cotton yarn exports.

India's cotton acreage in the coming season in 2010/11 is likely to remain same as previous year or a tad higher, Joshi said.

CAB has estimated 2009/10 acreage at 10.17 million hectares from 10.15 million hectares in the previous year.

India is likely to harvest 29.2 million bales of cotton in 2009/10, up from 29 million bales in the previous year.

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