India Approves 3.9 Million Bales for Export, So Far
October 21, 2010 By Seshadri Ramkumar, Texas Tech University
Exclusive to Cotton Grower & Cotton International
The Indian government has approved the export of 3.9 million bales (170 kg/bale) of cotton, according to a senior executive who is responsible for cotton purchasing for a large Indian textile conglomerate. The Textile Commissioner’s office has received applications for exporting 5.5 million bales, which is the upper limit set by the Government of India. The executive said that, barring a few rejections from Commissioner’s office, he expects traders from India to export the maximum amount.
The executive also commented on the arrival of cotton, which is going smoothly given that the monsoon season is ending. Although, it was raining in Mumbai earlier this week, the harvest is progressing well in the northern states of Punjab and Haryana, as well as the western states of Gujarat and Maharashtra. Within two weeks time, cotton will start arriving from the southern state of Andhra Pradesh.
A leading cotton exporter who is also on the board of the Cotton Association of India has indicated that the nominal price of cotton that will be exported is $1.25 per pound.
Currently, the Cotton Association of India’s production estimate for the 2010/11 season is 34.5 million bales. However, India’s Cotton Advisory Board (CAB) has estimated the production to be slightly lower, at 32.5 million bales. In its latest meeting on August 27, CAB estimated mill consumption in 2010/11 to be 22.15 million bales and the total consumption–which includes textile mills, small scale units and non-mill consumption–to be 26.6 million bales. It is not clear whether the Cotton Association of India will release new-crop output soon. A clearer picture will emerge after Diwali festivities after the first week of November 2010. The general consensus in India is that the crop is going to be big this season.
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