Cotton exports head for a high

Ducking the recent fall in international prices, India's cotton exports, driven by a good output are expected to touch an all time high of around eight lakh bales this season.

"The recent price fall of around 10 cents a pound is restricted to New York futures, I do not think there is reduction in price for trading in physical stocks. India's exports will be around 7-8 lakh bales," chairman and managing director, Ginni Filaments, Rajaram Jaipuria told PTI here.

He said bulk of the trading in Indian cotton has already taken place and with the production season over, only the contracts entered into earlier are being serviced.

Secretary-general, Indian Cotton Mills Federation, DK Nair said it was a unqiue season when the global supplies were tight but India had a good crop, giving a spur to exports.

He said compared to exports of not more than 50,000 bales in previous years, this time around it has jumped manifold and will be anywhere between six and eight lakh bales.

Jaipuria said bulk of the exports were to countries like Pakistan, Bangladesh, Vietnam, Thailand and South Korea.

He said Indian traders had entered into contracts at a time when prices were ruling at a remunerative 70 cents a pound and hence the recent fall in international prices has not had much affect on the country's exports.

Nair said allegations of Indian cotton being highly contaminated is not a dampener on exports. "We are in a slot where our cotton can sell. Many countries use our kind of cotton. Pakistan which is facing shortage this season is one of them," he added.