Pakistan has replaced Bangladesh to emerge as largest buyer of Indian cotton in October – December quarter due to a sharp decline in its domestic availability on crop damage hit by white flies virus, said Business Standard report. Data compiled by Textiles Commissioner’s office under Ministry of Textiles showed Pakistan imported 1.66 million bales (1 bale = 170 kgs) of cotton from India which works out to 47 per cent of India’s overall fibre exports to the tune of 3.52 million bales in October – December quarter. In the same quarter last year, however, India’s total cotton exports stood at 1.93 million bales which Pakistan’s contribution at 0.38 million bales. Encouraged by significant jump in exports in the first quarter of the current season, Ministry of Textiles has raised cotton export forecast of the current season to 7 million bales for the full year of 2015-16, over 21% increase from the last year’s level at 5.77 million bales. “The prevailing trend in cotton exports is likely to continue for the rest of the year due to crop damage in Pakistan. India’s cotton exports to other countries are also likely to remain significantly up this year,” said Kavita Gupta, Textiles Commissioner on the sidelines of the second Cotton Advisory Board meeting on Tuesday. With 0.86 million bales, Bangladesh slipped to the second position in India’s cotton export destinations. Bangladesh imported 2.3 million bales of Indian cotton last year. According to Gupta, around a third of crop in Pakistan was damaged resulting into textiles mills there import cotton from India to meet their consumption. As against 2.3 million tonnes (equivalent to 13.53 million bales) of cotton output last year, Pakistan is set to witness 1.54 million tonnes (equivalent to 9.03 million bales) this year. India transports cotton to Pakistan primarily through Wagah boarder. Meanwhile, global equation is also changing due to a slowdown in demand from China which contributed to 24% of India’s overall cotton exports in 2014-15. This year, however, China’s share is likely to decline with an estimated offtake of 1.2 million bales as against 1.68 million bales last year. A study by the Washington-based International Cotton Advisory Committee hints China’s cotton import to fall by 40% this year at 6.35 million bales (1.08 million tonnes) due to the fall in consumption and lower domestic cotton prices. If the pace of its imports remains steady, then Vietnam may overtake China as the largest importer of cotton in 2015-16. Cotton import by Vietnam for the first four months of 2015-16 totaled 327,000 tonnes, while those of China reported at 247,000 tonnes. ICAC estimated cotton import by Vietnam to rise by 17% to 6.47 million bales (1.1 million tonnes). Imports by Bangladesh are forecast to increase by 12% to 6.35 million bales (1.08 million tonnes). Consumption in both Vietnam and Bangladesh is increasing steadily, due to lower production costs, but both produce very little cotton, and instead must rely on imports to meet demand. Meanwhile, the Cotton Advisory Board (CAB) under the Ministry of Textiles has forecast India’s cotton output to hit the lowest in three years at 35.2 million bales (1 bale = 170 kgs) in 2015-16 on crop damage in major producing states including Gujarat, Karnataka and Punjab. This year’s estimated cotton output shows a decline of 7.39% from the previous year’s 38 million bales and a marginal decline from 35.9 million bales reported in the crop year 2012-13. CAB chaired by textile commissioner Kavita Gupta estimated lower cotton output due to ballworm pest attack on standing crop in Gujarat, drought hit lower yield in Karnataka and crop damage due to ‘white flies’ worms in Punjab.
