Bangladesh's Late Demand Increases Indian Cotton Exports by 67%
India’s cotton exports for the 2023-24 season, ending in September, are projected to surge by over two-thirds due to rising demand from mills in Bangladesh. The Cotton Association of India (CAI) forecasts shipments to reach approximately 2.6 million bales (170 kg each), marking a 67.7% increase from the previous season's 1.55 million bales.
“Bangladesh mills, which are operating on a tight supply, are purchasing Indian cotton as their shipments from the US and Brazil have been delayed. Currently, around 100,000 to 150,000 bales are being exported to Bangladesh each month,” said Atul Ganatra, President of CAI. Deliveries to Bangladesh by road take about five days.
In a recent meeting, CAI revised its pressing estimates for 2023-24 to 31.77 million bales, up from 30.9 million bales in February. This increase is primarily attributed to Central Indian farmers offloading old stocks. However, the current season’s pressing estimates are still lower than the previous year’s 31.89 million bales. Ganatra noted that the rise in pressing figures is due to carry-forward stocks entering the market. By the end of May, about 29.65 million bales had been pressed.
*Imports on the Rise*
Imports of cotton are estimated at 1.64 million bales, up from 1.2 million bales last season. By the end of May, 550,000 bales had already arrived in the country. Including opening stocks, imports, and pressing estimates, the total supply is projected to be 36.3 million bales, higher than the previous season's 35.54 million bales.
CAI estimates domestic demand at 31.7 million bales, up from 31.1 million bales. Demand from the non-MSME segment is expected to be 20.1 million bales (previously 28 million bales), while consumption from MSMEs is projected to rise significantly to 10 million bales from 1.5 million bales. Non-textile consumption remains steady at 1.6 million bales. Ganatra explained that the changes in consumption figures are due to the regrouping of data into new categories by the Committee on Cotton Production and Consumption (COCPC).
The average capacity utilization of spinning mills is estimated at around 90%, with mills in Central and North India operating at full capacity, and those in South India at 80%. CAI predicts closing stocks for the current season will be lower at 2.05 million bales, compared to last year’s 2.89 million bales.
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