Pakistan tops major destinations for Indian cotton in May
Indian cotton export, although tapered in May compared to April, but surged 24% year on year with shipment of 7.7 lakh bales (170 kg each) as against 6.2 lakh bales exported in May 2017. Pakistan emerged as the largest importer of Indian cotton in May, followed by Bangladesh and Vietnam.
Overall, unit prices realisation averaged INR119.5 per kg or US cents 81.83 per pound. This compared to domestic spot prices, were slightly higher but much lower, by about US cents 15 compared with global spot benchmark, the Cotlook ‘A’ index for the month. While the global benchmark has risen in May from its previous month’s level, export FOB value moderated in similar comparison.
During the first eight months of 2017-18 cotton marketing year, shipment aggregated 7.44 million bales as against 5.92 million bales in the corresponding months of previous marketing year. The price realization averaged INR116 a kg or US cents 82.26 per pound in April as against the Cotlook Index ‘A’ at 91.51 per pound and spot Shankar-6 at US cents 81.74 per pound.
Pakistan emerged as the top importer of Indian cotton in May with shipment of 1.97 lakh as against 0.56 lakh bales in the same month a year ago. Export to Pakistan picked up dramatically from January the ban on import imposed by the Pakistan government was lifted in view of crop shortage there. However, the lifting was accompanied by strict testing procedures.
In the 2017-18 marketing season upto May, export to Pakistan totaled 14.32 lakh bales, 60% more than the figures of 2016-17. Price-wise, it was in line with the average, implying that it was cheaper to import from India than from international markets. While the average FOB to Pakistan works out at US cents 81.86 per pound, the prevailing price, in terms of Cotlook A index, averaged US cents 96.67 per pound.
In 2016-17, a total of 8.9 lakh bales were shipped to Pakistan at an average price of US cents 78.85 per pound as against the Cotlook ‘A’ Index average of Us cents 82.89 per pound.
2 comments on “Pakistan tops major destinations for Indian cotton in May”
What is the source of all this data you have given for cotton exports. These data are not tally with the Commerce ministry data.
All data is collated from all Indian ports that handles textile consignment and analysis is based on actual shipment and not order intake. It will not tally with the Commerce Ministry data but represents 92% of final trade data.