Pakistan’s demand will greatly boost India’s cotton exports

by:JIYALI     2021-08-07
On Tuesday, a senior industry insider said that for the market year ending in September, India’s cotton exports may hit a record high of 7.5 million bales because of strong demand from Pakistan.   According to industry estimates, India exported about 7 million bales of cotton in 2006-07. KF Jhunjhunwala, President of the East India Cotton Association, said: Indian exporters’ sales were very active in November, December and January, and demand from China and Pakistan was strong. However, in February, China withdrew from the market and demand weakened, but we believe that Pakistani buyers will help. India exported more than 7.5 million bales.   He said that if things go well, Pakistan and Bangladesh's combined demand should be about 3 to 3.5 million bales this year, and China will import another 3.5 million bales of Indian cotton.   So far, India has signed about 5.5 million bales of cotton for the 2007-08 marketing year.   He said that Pakistan has become the main importer of Indian cotton this year, because Pakistan’s own cotton production has been reduced, the local weather is not good, and it has also been attacked by insect pests.   The government estimates that Pakistan’s cotton production may fall to 11.6 million bales this year, compared with 12.6 million bales last year.   Pakistan has a great demand for Indian cotton because Pakistani importers find that Indian cotton is very cheap because the two countries are close neighbors.   Jhunjhunwala said that India and the United States are the only two countries that export large amounts of raw cotton, but Pakistani textile mills like to import Indian cotton because of lower shipping costs.   Jhunjhunwala said that in the next few weeks, India’s cotton prices will fall because of the sharp drop in export orders, but prices will start to rise in March due to tight supply.   He said: Because of the weak trade, I feel that the short-term market will be weak. But the supply will be less than a week. Therefore, prices will show long-term weakness.   Since the beginning of January, the price of Indian cotton has dropped by about 1,000 rupees/candy, mainly due to reduced demand and sufficient supply. Each candy is equal to 355.62 kilograms.   But the supply of cotton across India will soon drop below 125,000-120,000 bales per day, which will support the price.  In 2007-08, India’s cotton production reached approximately 31 million bales, an increase of 3 million bales annually.   Federal Textile Commissioner J.N. Singh said recently that exports may exceed 7 million bales this year, higher than the 6.5 million bales previously estimated.  The main reason for the increase in production is that Indian farmers plant genetically modified cotton seeds. The expansion of genetically modified cotton planting area is the main reason for the increase in cotton production in India.   He said that BT cotton makes cotton resistant to pests, but it cannot increase yield.  The government and non-official organizations have estimated that the cotton planting area in India is 9.06 million hectares, of which BT cotton accounts for about 60%. In the next few years, the proportion of BT cotton may expand to 80% of the total cotton planting area.
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