Cotton exports down in January

Cotton exports were down in January with shipment of 12.4 lakh bales (170 kg each) as against 14.3 lakh bales exported a year ago. Last year, the markets were disrupted by demonitisation of high currency notes which had dented exports. The slowdown in cotton exports this year is largely due to rising prices and slower buying exports to Bangladesh. Thus, the first four months of 2017-18 cotton marketing season, recorded shipment of 33.5 lakh bales as against 35.9 lakh bales in the corresponding months of previous season.

Price comparison

The price realization averaged INR114 a kg or US cents 82.75 per pound in January as against spot Shankar-6 at US cents 82.69 per pound. Global spot benchmark, the Cotlook Index ‘A’ averaged at US cents 91.5 per pound. The current season began with average export prices at US cents 80.8 in October which jumped to US cents 90.68 in November only to moderate at US cents 75.5 in December. But domestic prices rose to US cents 79.4 per pound which made exporters cancel contracts.

Major and New Markets

During January, Bangladesh, Pakistan and Vietnam were the largest importers of cotton with combined volumes at 1.07 million bales amongst the 17 countries that imported cotton from India. Shipment to Pakistan was up 33% in volume and 42% in value as its average unit price was US cents 82.5 per pound against US cents 77.5 last year. Exports to China 80% during the month. Italy, South Korea and Spain were new cotton buyers this January while Turkey, France, United Arab Emirates, Germany, Mozambique and Singapore did not import any cotton, in comparison to last year.

Source: Textile Beacon’s Fibre to Yarn Export Statistics