Indian Cotton Exports Surge 67% Due to Increased Demand from Bangladesh
Late Demand from Bangladesh Drives Cotton Export Increase
India’s cotton exports for the 2023-24 season, ending in September, are projected to rise by over two-thirds due to increased demand from mills in Bangladesh. The Cotton Association of India (CAI) expects shipments to reach around 2.6 million bales (170 kg each) — a significant 67.7% increase from the previous season’s 1.55 million bales. “Bangladesh mills, which are running hand-to-mouth, are buying Indian cotton. As their import shipments from the US and Brazil have been delayed. About 0.1 - 01.5 million bales are being exported to Bangladesh monthly,” said Atul Ganatra, President, CAI. By road, Bangladesh gets Indian cotton delivered in about five days.Increased Pressing Estimates Reflect Central India's Stock Offloading
CAI has revised the pressing estimates for 2023-24 to 31.77 million bales, up from 30.9 million bales in February. This increase mainly comes from Central India, where farmers are offloading their old stocks. Despite this increase, the current season's pressing estimates are still lower than the previous year’s 31.89 million bales. Ganatra attributed the increase in pressing figures to the carry-forward stocks entering the markets. As of the end of May, about 29.65 million bales have been pressed.Imports of natural fibre are estimated at 1.64 million bales, up from 1.2 million bales. Of this, 550,000 bales had already arrived by the end of May. Including the opening stocks, imports, and pressing estimates, the total supply is expected to be 36.3 million bales, higher than the previous season’s 35.54 million bales.
Spinning Mills Operating at High Capacity
CAI estimates domestic demand at 31.7 million bales, up from 31.1 million bales. Demand from the non-MSME segment is estimated at 20.1 million bales, while consumption from MSMEs is pegged higher at 10 million bales. Non-textile consumption remains flat at 1.6 million bales. Ganatra noted that changes in consumption figures are due to the regrouping of consumption data into new categories decided by the COCPC.The average capacity utilization of spinning mills is around 90%, with mills in Central India and North India running at 100% capacity and 80% in South India. CAI projects closing stocks for the current season by the end of September to be lower at 2.05 million bales compared to the previous year’s 2.89 million bales.
The surge in demand from Bangladesh has significantly boosted India’s cotton exports for the 2023-24 season. With revised pressing estimates and increased imports, the overall supply is higher than the previous season. Despite the changes in domestic consumption patterns, the high capacity utilization of spinning mills indicates a robust market. CAI remains optimistic about meeting the export targets and managing the domestic demand effectively.