The Hindu Business Line : Cotton imports may top 14 lakh bales

DESPITE record production during the current year (October 2003-September 2004), cotton imports into the country are not showing any significant decline. During 2003-04, imported cotton arrivals are expected to reach 14 lakh bales (of 170 kg), only marginally down from 15.5 lakh bales last year.

"About 12 lakh bales were imported till April and another two lakh bales would reach our shores in the coming months," Mr Suresh A. Kotak, Chairman of Kotak & Co Ltd and former president of East India Cotton Association (EICA) told Business Line.

But the silver lining, according to Mr Kotak, is that after almost a decade India is exporting cotton. He estimated the export volume at 8 lakh bales this year.

A sharp increase in global cotton prices since October last year caused, amongst other factors, by a surge in Chinese demand opened up opportunities for export of cotton. Farmers and traders are jubilant this season that strong prices in the overseas markets coincided with a sharp rebound in domestic output.

"Our cotton exports are to Pakistan, Bangladesh and China," Mr Chandulal Thakkar, Director of EICA, said adding that imports were mainly from Egypt, Sudan and the US. He attributed imports to poor quality of domestic cotton, mainly in terms of staple length and trash content.

Suggesting that international cotton prices would be firm but range-bound at 65-70 cents per pound, Mr Kotak expressed optimism that exports would continue in future. World cotton prices are influenced by competition from polyester, global demand growth and shift of processing industry from West to the Eastern parts of the world.

"Indian cotton industry is trying to get closer to the standards of countries like the US and Australia. In order to further improve quality, attention should be directed to issues such as improved farm management, pre-and post-harvest practices and so on," he added.

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