Rising demand from textile mills in the country is causing a spike in India’s cotton exports to Bangladesh for the 2023-24 season. As per the Cotton Association of India, India’s cotton exports to Bangladesh are expected to rise by 67 per cent to around 26 lakh bales (170 kg each) during the season from 15.5 lakh bales in the previous season.
Around 1-1.5 lakh bales of cotton are being exported from India to Bangladesh monthly, says AtulGanatra, President of CAI. By road, Bangladesh receives Indian cotton in about 5 days.
CAI has revised the pressing estimates for 2023-24 to 317.70 lakh bales, up from 309 lakh bales in February. This increase mainly comes from Central India, where farmers are off-loading old stocks. However, the current season's pressing estimates are still lower than the previous year’s 318.9 lakh bales. Ganatra attributed the increase in pressing figures to the carry-forward stocks entering the markets. By the end of May, about 296.53 lakh bales had been pressed.
India’s cotton imports for the season are expected to rise to 16.4 lakh bales from the previous estimate of 12 lakh bales. Of this, 5.5 lakh bales had already arrived in the country by the end of May. Including opening stocks, imports, and pressing estimates, the total supply is projected at 363 lakh bales, higher than the previous season’s 355.4 lakh bales.
CAI estimates demand for Indian cotton to rise to 317 lakh bales from 311 lakh bales. Demand from the non-MSME segment is estimated at 201 lakh bales, while consumption from MSMEs is pegged higher at 100 lakh bales.
The average capacity utilization of spinning mills is estimated at around 90 per cent, with mills in Central and North India running at 100 per cent capacity and those in the South at 80 per cent. CAI projects closing stocks for the current season by the end of September to be lower at 20.50 lakh bales, compared to the previous year’s 28.90 lakh bales.
