India’s 2017/18 cotton exports are likely to jump nearly 30% from the year before to a four-year high of 7.5 million bales, as climbing global prices and a weaker rupee boost overseas demand, the head of an industry body told Reuters.
Increased supply from India could drag on a rally in international prices for the commodity and would likely compete with shipments to Asia from exporters like the United States, Brazil and Australia.
“We can end the season with exports of 7.5 million bales,” said Atul Ganatra, president of the Cotton Association of India (CAI), adding that higher international prices would drive up shipments.
ADVERTISEMENT
The country has exported 6.3 million bales so far in the marketing year that started on October 1 , he added. Each bale contains 170 kg of cotton.
India shipped 5.82 million bales of cotton overseas last marketing year, according to data compiled by the State-run Textile Commissioner’s office.