Indian cotton exports may not rise significantly, says Cotton Corp.

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Even though China and Pakistan, two major cotton producers, are expected to have lower year-on-year 2015 production, Indian exports are not likely to rise beyond a million bales or two, the chairman and managing director of the state-owned Cotton Corporation of India (CCI) said.

B.K. Mishra told IndoAsiancommodities that  domestic prices were good and Indian exports “may not be significantly higher than last year’s.” He said Indian cotton production during the 2014-15 cotton year (October to September) was 38 million bales and he expects this to fall to 36.5 million bales this year mainly due to the infection of the crop by white foly.,

“Demand is expected to be about 32 million bales,” Mishra said. He said demand was increasing annually, but very slowly—by one or two percent, so even though Indian cotton production is expected to drop year-on-year in the 2015-16 cotton year, there will still be a small surplus.

Mishra said the government could not take steps to set up a buffer stock for the crop as it recently decided to in the case of pulses because “India is a cotton-surplus producer, whereas India needs to import pulses to meet domestic demand”. He also said that the cotton cultivated was of the BT variety, which did not use pesticides.

The government-owned CCI extends marketing support to cotton growers.

 

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