India's cotton exports are set to hit the highest level in two years in February as a rise in global prices has made Indian cotton attractive to Asian buyers who previously bought the fiber from Brazil and the United States. , the traders said.
Even before benchmark US cotton futures hit a 17-month high this month, India, the world's second-largest cotton producer, was struggling to export the fiber. But, five traders said that after a sharp rise in global prices, buyers have started turning to India.
In February, Indian traders signed contracts to export 400,000 bales (68,000 metric tons) of cotton — the most since February 2022 — mainly to China, Bangladesh and Vietnam, he said.
"Indian cotton is now very competitive. It is the cheapest in the world and exports are increasing," Atul Ganatra, president of the Cotton Association of India, told PTI.
He said India could export 2 million bales by September 30 in the 2023/24 marketing year, up from the previous expectation of 1.4 million bales.
But some traders believe exports could rise to 25 lakh bales, as Indian cotton is 6 to 7 cents a pound cheaper than supplies from the United States, the world's biggest exporter.
If Indian cotton continues to trade at a discount to the global benchmark, traders are expected to export 300,000 bales in March, said a New Delhi-based dealer of a global trading house.
Aggressive Chinese buying has pushed up US cotton prices in the past two months and now Beijing is buying from India, a Mumbai-based trader said.
"China has purchased about 300,000 bales for shipment in February and March," the trader said.
Currently, India has the advantage of lower prices and lower freight costs compared to supplies from the United States and Brazil due to its proximity to importing countries, said Vinay Kotak, director of Mumbai-based Kotak Ginning and Pressing Industries Pvt Ltd. Ltd.
Kotak said that despite strong demand, India's exports will remain limited by limited surplus as local production is expected to decline this year.
The country's cotton production could fall 7.7% from a year earlier to 29.41 million bales in 2023/24, the lowest since 2007/08, according to the Cotton Association of India.ndia's cotton exports to hit 2-year high in February as discounts woo buyers
India's cotton exports are set to hit the highest level in two years in February as a rise in global prices has made Indian cotton attractive to Asian buyers who previously bought the fiber from Brazil and the United States. , the traders said.
Even before benchmark US cotton futures hit a 17-month high this month, India, the world's second-largest cotton producer, was struggling to export the fiber. But, five traders said that after a sharp rise in global prices, buyers have started turning to India.
In February, Indian traders signed contracts to export 400,000 bales (68,000 metric tons) of cotton — the most since February 2022 — mainly to China, Bangladesh and Vietnam, he said.
"Indian cotton is now very competitive. It is the cheapest in the world and exports are increasing," Atul Ganatra, president of the Cotton Association of India, told PTI.
He said India could export 2 million bales by September 30 in the 2023/24 marketing year, up from the previous expectation of 1.4 million bales.
But some traders believe exports could rise to 25 lakh bales, as Indian cotton is 6 to 7 cents a pound cheaper than supplies from the United States, the world's biggest exporter.
If Indian cotton continues to trade at a discount to the global benchmark, traders are expected to export 300,000 bales in March, said a New Delhi-based dealer of a global trading house.
Aggressive Chinese buying has pushed up US cotton prices in the past two months and now Beijing is buying from India, a Mumbai-based trader said.
"China has purchased about 300,000 bales for shipment in February and March," the trader said.
Currently, India has the advantage of lower prices and lower freight costs compared to supplies from the United States and Brazil due to its proximity to importing countries, said Vinay Kotak, director of Mumbai-based Kotak Ginning and Pressing Industries Pvt Ltd. Ltd.
Kotak said that despite strong demand, India's exports will remain limited by limited surplus as local production is expected to decline this year.
The country's cotton production could fall 7.7% from a year earlier to 29.41 million bales in 2023/24, the lowest since 2007/08, according to the Cotton Association of India.ndia's cotton exports to hit 2-year high in February as discounts woo buyers
India's cotton exports are set to hit the highest level in two years in February as a rise in global prices has made Indian cotton attractive to Asian buyers who previously bought the fiber from Brazil and the United States. , the traders said.
Even before benchmark US cotton futures hit a 17-month high this month, India, the world's second-largest cotton producer, was struggling to export the fiber. But, five traders said that after a sharp rise in global prices, buyers have started turning to India.
In February, Indian traders signed contracts to export 400,000 bales (68,000 metric tons) of cotton — the most since February 2022 — mainly to China, Bangladesh and Vietnam, he said.
"Indian cotton is now very competitive. It is the cheapest in the world and exports are increasing," Atul Ganatra, president of the Cotton Association of India, told PTI.
He said India could export 2 million bales by September 30 in the 2023/24 marketing year, up from the previous expectation of 1.4 million bales.
But some traders believe exports could rise to 25 lakh bales, as Indian cotton is 6 to 7 cents a pound cheaper than supplies from the United States, the world's biggest exporter.
If Indian cotton continues to trade at a discount to the global benchmark, traders are expected to export 300,000 bales in March, said a New Delhi-based dealer of a global trading house.
Aggressive Chinese buying has pushed up US cotton prices in the past two months and now Beijing is buying from India, a Mumbai-based trader said.
"China has purchased about 300,000 bales for shipment in February and March," the trader said.
Currently, India has the advantage of lower prices and lower freight costs compared to supplies from the United States and Brazil due to its proximity to importing countries, said Vinay Kotak, director of Mumbai-based Kotak Ginning and Pressing Industries Pvt Ltd. Ltd.
Kotak said that despite strong demand, India's exports will remain limited by limited surplus as local production is expected to decline this year.
The country's cotton production could fall 7.7% from a year earlier to 29.41 million bales in 2023/24, the lowest since 2007/08, according to the Cotton Association of India.
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