Cotton export a good start to new 2020-21 season in India
Cotton export shipment in October, the first month of new 2020-21 marketing season, surged four times compared to last year in volume at 6.84 lakh bales worth INR1,238 crore or US$170 million. This was a good start to the season, as they were also doubled even compared with the first month of 2018-19 season. The 2019-20 season (Oct-19 to Sept-20) had ended with export of 61.84 lakh bales worth US$1,580 million or INR11,368 crore.
Bangladesh was the largest market for Indian cotton export during October, followed by China and Vietnam. No shipment was reported to Pakistan during the month.
Export price realisation for cotton averaged INR106 a kg or US cents 66.50 per pound during October. This was below Cotlook A index, the global spot price benchmark also compared with domestic spot price for benchmark Gujarat Shankar-6. During the month, Cotlook averaged US$75.51 per pound and Shankar-6 at US cents 68.33 per pound, making Indian cotton more competitive in global market.
Bangladesh imported Indian cotton at an average prices of US cents 68.56 per pound in October 2020 as against US cents 75.97 per pound a year ago. About 97% of its imports consisted 28.5-34.5 mm length cotton. In similar comparison, China import was slightly lower at US cents 65.63 per pound since its import of 28.5-34.5 mm length was below 95%. Realisation from Vietnam was US cents 64.21 per pound, since 91% of its import was of 28.5-34.5 mm length and about 2% of <20 mm length cotton.
Cotton Balance Sheet
According to Cotton Association of India, cotton crop for 2020-21 season is estimated at 356 lakh bales (170 kg each), less by 4 lakh bales than the previous year’s crop.
Total supply till end of the 2020-21 season is pegged at 477.50 lakh bales, including opening stock of 107.50 lakh bales, crop at 356 lakh bales and imports at 14 lakh bales.
Domestic consumption estimated by the CAI is 330 lakh bales, while cotton export will of about 60 lakh bales. Thus, the carry over stock at the end on the season on 30 September 2021 will be 87.50 lakh bales.
According to Textile Beacon’s “Fibre to Yarn Export Statistics – India” report, the 2019-20 season (Oct-19 to Sept-20) had ended with export of 61.84 lakh bales worth US$1,580 million.
