India'S Cotton Exports Increase And Global Cotton Prices Rise

According to the Indian trade agency, India's cotton exports could jump 40% from a year ago to 7 million bales in 2020 / 21, the highest level in seven years, as the devaluation of the rupee and rising global prices enable exporters to conclude export contracts.

An increase in India's exports could affect global prices and restrict exports from competitors such as the United States and Brazil to major Asian buyers such as China, Bangladesh and Vietnam. The cotton association of India says demand for Indian cotton exports is good at present, because the price is the lowest in the world. A rebound in global prices is likely to increase India's exports in the new year from 5 million bales a year ago to 7 million bales.

Global cotton prices are close to their 17 month high, while the Indian Rupee hit a two month low this week, increasing traders' margins on overseas sales.

Dealers at global trading companies say Indian cotton will be offered to buyers in China, Bangladesh and Vietnam at 74 cents a pound (cost and freight) and will be higher in November than 77 cents in Brazil and the United States. Arun sekhsaria, managing director of the exporter d.d.cotton, said most of the goods were shipped to China and Bangladesh.

There will be a surplus of 3.5 million bales of cotton last year, which will exceed India's export surplus of 4.5 million bales last year. In November, a total of 700000 e-bag dealers in India signed a contract. It is reported that the limited supply of Indian export containers has delayed the export for several days, and cotton exporters have asked the Ministry of Commerce to provide more containers.