India’s cotton exports during the 2015-16 season is estimated at around 60 lakh bales. Import prices work out to be lower than prevailing domestic cotton prices. And only those mills which can wait for over 30 to 45 days for delivery can enter the cotton import business. Meanwhile in the domestic market prices continued to rule high.
Prices have moved upward because the largest cotton stocks holders, ginners or farmers, are not interested in selling cotton. Due to the very hot season, there has been weight loss in cotton. Therefore, farmers are waiting for the rains to arrive. After the arrival of the monsoons, the cotton weight will once again increase due to the moisture and water factor. And it is during this period that farmers will unload their cotton so that they get higher prices.
Indian prices are quite high when compared to international prices of 67 cents per pound and there is no scope for exports. However imports are feasible. Total cotton exports till May-end are estimated at 56 lakh bales and by the end of the season they would be to the order of 60 lakh bales. Cotton demand till May-end was 233 lakh bales.