India's cotton exports will exceed 10 million bales this year

This year, India’s cotton exports will exceed 10 million bales for the first time, which will become an important milestone for India in a seven-year period from a net cotton importer to the world’s second-largest cotton exporter. Indian cotton prices are the cheapest. According to the current progress, at least one third of the cotton this year may have been exported.

India is expected to harvest 34.5 million bales this year, and the textile industry is facing a severe recession this year. Exports have become a lifesaver for farmers in eight cotton-growing countries in India. Otherwise, they will be forced to sell cotton at a price below the minimum support price because domestic textile mills have slowed down.

According to data from the General Administration of Foreign Trade, so far, cotton traders have registered 10 million bales of cotton, which is higher than the 7.8 million bales exported last year. The textile ministry will convene a meeting of industry and commerce representatives this week to review the cotton production and cotton consumption this year.

The main export destination is China. China is setting up a cotton reserve to supply its own textile industry. China and India are the world’s two largest cotton producers and consumers. The US Department of Agriculture said that China is expected to import 16 million bales of cotton in 2012-13 and the world’s cotton consumption will rise for the first time in three years.

Since Chinese prices have touched 117 cents per pound, Indian cotton prices are 97 cents per pound, which is very attractive. Global cotton use is forecast at 114.5 million bales, which is an increase of 4% this year and is the first increase in three years.

As of 2003-04, India was still a net importer of cotton, and since then it has become an exporter. Mainly because India has adopted new technology (BT cotton), the increase in production, so that India can freely export cotton.