Pakistan becomes largest buyer of Indian cotton
Pakistan has replaced Bangladesh to emerge as the largest buyer of Indian cotton in the October-December 2015 quarter on the back of a sharp decline in its domestic availability due to widespread crop damage from whiteflies
Data compiled by the Textiles Commissioner?s office under the textiles ministry showed Pakistan imported 1.66 million bales (1 bale = 170 kg) of cotton from India during the December 2015 quarter. This works out to 47 per cent of India?s overall fibre exports to the tune of 3.52 million bales in the period under review.
With 0.86 million bales, Bangladesh slipped to the second position in India?s cotton export destinations.
Encouraged by a significant jump in exports in the first quarter of the current season, the ministry has raised cotton export forecast of the current season to seven million bales for the full year of 2015-16, over 21 per cent increase from last year?s level of 5.77 million bales.
The prevailing trend in cotton exports is likely to continue for the rest of the year due to crop damage in Pakistan. India?s cotton exports to other countries are also likely to remain significantly up this year
Meanwhile, global equation is also changing due to a slowdown in demand from China, which constituted 24 per cent of India?s overall cotton exports in 2014-15. This year, China?s share is likely to decline with an estimated offtake of 1.2 million bales against last year?s 1.68 million bales.
A study by the Washington-based International Cotton Advisory Committee (ICAC) says China?s cotton import might fall 40 per cent this year to 6.35 million bales (1.08 million tonnes) owing to the fall in consumption and lower domestic cotton prices. If the pace of its imports remains steady, Vietnam might overtake China as the largest importer of cotton in 2015-16. Cotton import by Vietnam for the first four months of 2015-16 totalled 327,000 tonnes, while those of China were at 247,000 tonnes.
The Cotton Advisory Board estimates lower cotton output due to ballworm pest attack on standing crop in Gujarat; lower yield due to drought in Karnataka; and crop damage due to whiteflies in Punjab.