Cotton exports may fall by 14% in 2010-11

Cotton exports may dip by 14 per cent to 1.2 million tonnes in 2010-11 marketing year, a report by the International Cotton Advisory Committee said.

Industry officials said strong domestic demand may curtail the cotton exports in 2010-11 marketing year (October-September).

"Indian exports could decline to 1.2 million tonnes due to a reduced exportable surplus," it said. In 2009-10 marketing year, cotton exports are estimated to double to 1.41 million tonnes.

The Confederation of India Textiles Industry (CITI) is also of the view that the country's cotton exports would fall in 2010-11 marketing year.

"The export of cotton is going to be limited next year because of increased domestic demand," a senior CITI official said. 

India's cotton production is expected to rise marginally at 5.1 million tonnes in 2010-11 against 5.01 million tonnes, while the domestic demand is estimated to rise at 4.59 million tonnes against 4.25 million tonnes, the official said.

Only 1.19 million tonnes of cotton (including carry-over stock of 0.68 million tonnes from the current season) would be available as surplus for exports in 2010-11, he said.

"As a result, we have requested the government to calibrate exports from the beginning of the season unlike in 2009-10," the CITI official said.

In the wake of rising cotton prices in the domestic market, the government has recently allowed exports of the fibre only through licenses. It has also imposed an export duty of Rs 2,500 per tonne on raw cotton.

At present, the domestic price of Shankar variety (raw cotton) is ruling firm at Rs 30,000 for a candy of 356 kg, while yarn price is down at Rs 185 per kg.