India’s cotton exports for the 2023-24 season, ending in September, are projected to increase by over two-thirds due to rising demand from mills in Bangladesh. The Cotton Association of India (CAI) expects shipments to reach around 26 lakh bales (of 170 kg each) — a 67.7 per cent increase from the previous season’s 15.5 lakh bales.
“Bangladesh mills, which are running hand-to-mouth, are buying Indian cotton as their import shipments from the US and Brazil have been delayed. Monthly about 1-1.5 lakh bales are being exported to Bangladesh,” said Atul Ganatra, President, CAI. By road, Bangladesh gets Indian cotton delivered in about 5 days.
CAI, in its recent meeting, has revised the pressing estimates for 2023-24 at 317.70 lakh bales, up from 309 lakh bales in February. The increase has mainly come from Central India, where farmers are seen off-loading their old stocks. However, the pressing estimates for the current season are still lower than previous year’s 318.9 lakh bales.
Ganatra attributed the increase in pressing figures to the carry forward stocks coming into the markets. As of May-end, about 296.53 lakh bales have been pressed.
Imports up
Imports of the natural fibre are estimated at 16.4 lakh bales ( 12 lakh bales). Of this, 5.5 lakh bales have already arrived into the country till May-end. Including the opening stocks, imports and the pressing estimates, the total supply is seen at 363 lakh bales, which is higher than previous season’s 355.4 lakh bales.
CAI estimates demand at 317 lakh bales (311 lakh bales). Demand from the non-MSME segment is estimated at 201 lakh bales (280 lakh bales), while the consumption from MSME is pegged higher at 100 lakh bales (15 lakh bales). Non-textiles consumption is seen flat at 16 lakh bales. Ganatra said the changes in consumption figures is because of the regrouping of consumption data in new categories decided by the COCPC.
The average capacity utilisation of spinning mills is estimated at around 90 per cent, with mills in Central India and North India running at 100 per cent capacity and 80 per cent in South. CAI sees closing stocks for current season by end September lower at 20.50 lakh bales against previous year’s 28.90 lakh bales.