Did you know how much cotton was exported in 2016-17 season? 6… bales

The 2016-17 cotton marketing year (October to September) ended with exports at 6.74 million bales (excluding waste) valued at US$1,996 million or INR13,175 crore. Shipment showed a 6% increase over previous season while value surged 27%. This was largely due to 20% increase in price (weighted average) or unit value realization during the season. The data is collated from 21 ports that handled cotton fibre consignment during the year, led by Mundra and JNPT accounting for 85% of all cotton exported from India in 2016-17. They were distantly followed by Petrapole Road and Pipavav ports.

Peak season shifts and extends

A noticeable shift was seen in peak shipment activity during 2016-17, and this was due to demonetisation of high value currency notes with effect from 9 November. Normally, peak shipment season prevail in between November- February and later tapers off. This year, the activity peaked in December and extended up to May when 79% of the shipment was done. In the previous season of 2015-16, 78% of the shipment was completed between November and March. Thus, the impact of demonetisation was clear visible on both, export volume and prices – which remained unusually high across the season.

Exports at higher price

The year began with export prices averaging US cents 87 per pound and remained very high as the season progressed with similar level seen in July 2017. They remained below Cotlook ‘A’ index for most part of the year by about US cents 2-5 having widened to US cents 10 in May. Compared to spot prices (Shankar-6), export prices were slightly below for most months. Comparing simple monthly averages of key price indicators Cotlook ‘A’ (US cents 83 per pound) and Shankar-6 spot rate (US cents 81 per pound) of Cotton Association of India during 2016-17, pegs export average price (US cents 81 per pound) up 13% year on year while Cotlook rose 15% and spot rates by 14%. Thus, export price realization has been healthy in line with key indicators, despite month on month variations. The surge in prices this season was largely due to farmers resistance to sell crop in transactions using banking system due to paucity of cash. Hitherto, a large portion of trade was done in cash, and the sudden overnight policy pronouncement had caught buyers and sellers by surprise with no option of than using banking transactions.

36 countries imported cotton but top four grabbed over 80%

During the marketing year 2016-17, 36 countries imported India cotton, of which, four countries – Bangladesh, China, Vietnam and Pakistan accounted for 84% of cotton shipment. This was slightly less than 89% in 2015-16. Pakistan, more than halved, its imports from India after it imposed ban in the initial period of the year citing contamination in couple of consignment. Indonesia, Thailand, Turkey and Taiwan were the other importers, accounting for another 12%. Among the top 8 importers, Thailand imported cotton at an average price of US cents 94 per pound followed by Bangladesh at US cents 81 per pound. Whatever volume Pakistan imported was at US cents 74 per pound.

Finer cotton variety in demand

During the year, finer variety (above 28.5mm length) was most in demand accounting for almost all the crop that was exported. The average price realization was also healthy this year, fetching US cent 78 per pound for 28.5-34.5 mm cotton, up from US cents 66 last year. Similarly, cotton above 34.5mm fetched a handsome US cents 122 per pound against US cents 78 per pound last year.