Cotton imports from India to go up

MUMBAI: Indian cotton prices rose between one and two per cent for different varieties after the second-largest cotton producer relaxed export controls, as good monsoon rains have raised prospects of higher output.

India is now seen exporting about eight million bales of cotton, mostly to Pakistan and China, in the year to September 2011, up from earlier estimates of about 3 million bales, trade officials said.

The officials said Pakistan, where devastating floods have damaged the cotton crop, is likely to import about 3 million bales (of 170 kg each) of cotton this year, against average annual imports of 1.5-2 million bales.

“If it (cotton export) is free now, Pakistan will seek most of its cotton imports from us, but China still will be the major buyer,” said a senior official with Sekhsaria & Co, a Mumbai-based exporter.

Published in The Express Tribune, August 19th, 2010.