India’s Imports Could Top 1.5 Million Bales
With international cotton prices significantly lower than fiber purchased on the domestic market, India’s imports could triple the amount posted last year.
August 7, 2012
With international cotton prices significantly lower than fiber purchased on the domestic market, it’s no surprise that India’s import totals are up over last year. But the amount isn’t merely higher – it’s much higher, and could even triple last year’s import totals, according to an article published on www.fashionunited.com. With 500,000 bales already brought in and contracts signed for 1 million more, the total imports for the year ending Sept. 30 will dwarf last year’s import total of 500,000 bales.
Earlier in the year, India’s government implemented a cotton export ban because exports grew much faster than expected in the early part of the year, leaving government officials concerned that there wouldn’t be enough cotton left for the country’s powerful textile industry. Now, supplies of domestic cotton are, in fact low, and that has helped to drive prices for local cotton to about 88 cents per pound. Imported fiber – primarily from Africa, Australia and Brazil – is available for 75 to 80 cents per pound.
Heading into the last quarter of the year, India’s cotton exports have ground to a halt, although they have already totaled a healthy 11.5 million bales (170 kg each). Even though their purchasing has tailed off in recent months, China is still the top export destination for Indian cotton in 2011/12.
Source: Fashion United. Edited by Mike McCue. Click here to see the original story.