NEW DELHI: India’s cotton imports are set to double amid crop shortfall for the 2018-19 season which ends in September.
While cotton industry estimates imports to cross 30 lakh bales (each of 170 kg) for the season, double from 15.8 lakh bales reported last year, trade sources believe that cotton import shipments will be restricted to around 25 lakh bales as against estimated imports of 31 lakh bales.
Delayed shipments
“Out of the total contracted imports of 27 lakh bales for the season, about 14 lakh bales have already arrived at Indian ports till July-end, while additional 10-11 lakh bales are estimated to arrive by September. There is some delay in several shipments, due to which about 2-3 lakh bales are likely to arrive in October,” said Atul Ganatra, President, CAI. CAI had estimated 31 lakh bales of cotton imports for the year.
On the other hand, cotton prices will rule higher even amid increased imports as the shortage of fibre is likely to cause supply crunch till the beginning of the next season after October 2019. Trade estimates prices to hover between Rs.44,000-46,000 a candy of ginned cotton (each of 356 kg).
The 2018-19 cotton crop is estimated at over a decade-low at 312 lakh bales. This prompted industry to look for cotton from global suppliers such as the US, Brazil and African Countries.
While cotton industry estimates imports to cross 30 lakh bales (each of 170 kg) for the season, double from 15.8 lakh bales reported last year, trade sources believe that cotton import shipments will be restricted to around 25 lakh bales as against estimated imports of 31 lakh bales.
Delayed shipments
“Out of the total contracted imports of 27 lakh bales for the season, about 14 lakh bales have already arrived at Indian ports till July-end, while additional 10-11 lakh bales are estimated to arrive by September. There is some delay in several shipments, due to which about 2-3 lakh bales are likely to arrive in October,” said Atul Ganatra, President, CAI. CAI had estimated 31 lakh bales of cotton imports for the year.
On the other hand, cotton prices will rule higher even amid increased imports as the shortage of fibre is likely to cause supply crunch till the beginning of the next season after October 2019. Trade estimates prices to hover between Rs.44,000-46,000 a candy of ginned cotton (each of 356 kg).
The 2018-19 cotton crop is estimated at over a decade-low at 312 lakh bales. This prompted industry to look for cotton from global suppliers such as the US, Brazil and African Countries.
No comments:
Post a Comment