Cotton Exports Likely To Go Up 18% To 65 Lakh Bales

Mumbai: In view of expected cotton bumper crop in 2007-08, the country is expected to export over half the amount of cotton it has exported in the past nine years (from 1998-99). On the back of strong production, exports are likely to rise by 18 per cent to 65 lakh bales (1 bale= 170 kg) against last year's exports of 55 lakh bales. Cotton exports may go up to around 65-70 lakh bales in 2007-08, the source said. Consumption is exceeding production worldwide. However, India is one of the few countries where production is more than consumption. East India Cotton Association President K F Jhunjhunwala has also pegged his initial estimate of export figures at 60 lakh bales. Industry experts said that China would aggressively look for imports as it requires more than 11 million tonnes, whereas its domestic production is at 7.5 million tonnes. The consumption level in India is also expected to go up by around 10 per cent this year to 245 lakh bales from 230 lakh bales last year. Acreage under cotton in the US is already down by 20 per cent, which is expected to fall further in the years to come. In spite of higher production in India, marketmen are bullish about the prices for 2007-08 on the back of good export prospects. Prices have already touched Rs 20,000 a candy (356 kg) in the country.