According to trade and industry sources, due to a drop in quality in the Indian Cotton, countries that have been India’s exporting target market are exhibiting reluctancy to buy the natural fiber cotton from India. This unexpected block can gravely affect the Indian cotton industry and put a damper on the exports that were projected at 75 lakh bales (of 170 kg each) by the Committee on Cotton Production and Consumption, a body of all the stakeholders in the cotton industry.
“Due to poor quality of Indian cotton, importing nations are a little hesitant to buy from us,” said an upcountry trading source, who requested to stay anonymous.
A trader from the western part of the country said that the Cotton Corporation of India (CCI) has been left holding 51 lakh bales of cotton procured this season due to the fibre being slightly yellow in colour. Similarly, Maharashtra State Cooperative Cotton Growers Marketing Federation (MSCCGMF) has not been able to sell at least six lakh bales it procured from the growers due to the same issue.
To combat with the problem at hand, the offered prices have been lowered for export by the CCI last week. CCI’s Agrawal said cotton exports this season would be between 70-75 lakh bales, up from projections of 65-70 lakh bales made last month.
“Exports will be around 50-55 lakh bales in view of the problems that are reported on quality,” said SIMA’s Selvaraju. During the current season, 46 lakh bales have been exported until last week with most of the shipments heading to Bangladesh, China, Turkey and Vietnam.
