India, the world's second biggest cotton producer has seen a rise by five percent in its cotton exports till February of this year. It exported 7.8 million bales, one bale has 170 kg. Exports from December to February were primarily to China, Bangladesh, Vietnam, and Pakistan. However the pace of shipments is expected to lessen in coming months depending upon demand from China as per the latest report.
According to the US Department of Agriculture (USDA), total cotton exports are expected to touch 10.2 million bales in the ongoing 2013-14 marketing year as Indian cotton is favourably priced relative to the Cotlook A index, that monitors global cotton trade. Cotton exports are expected to be marginally higher in 2013-14 as against 9.9 million bales in the pevious year.
Quoting trade sources, the USDA said that farmers are willing to hold cotton on farm waiting for better pricing as the year progresses on other hand mills are maintaining smaller stocks of cotton.
On market arrival of cotton, it will continue to lag last year's pace and have reached 21.8 million bales as reported by state-run Cotton Corporation of India. In Punjab, Haryana, and Rajasthan cotton arrivals are particularly slow, the pace of cotton deliveries to local markets is 30 percent behind a year ago while the arrivals in Andhra Pradesh are also running significantly behind the year ago pace.
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