||Opportunity For Pakistan Indian Cotton Exports Going Down
Cotton export from India is expected to witness a massive decline due to lack of interest by foreign buyers. Cotton traders said that the India has set a production target of 34.3 million bales for current year, which is some 6 per cent lower than the target of last year.
Last year cotton exports from India were 12.78 million bales, highest in Indian history, this year the exports are feared to decline massively mainly due to the lack of interest shown by Chinese buyers in Indian cotton.
Experts have estimated some 50 per cent decline in cotton exports from India during fiscal year 2012-2013 as China is the largest buyers of Indian cotton and it procured some 7-8 million bales during last year from India.
In this regard a former executive member Pakistan Cotton Ginners Association (PCGA), said that this would be a better opportunity for Pakistani traders. However, he added, the Indian traders might export their cotton stocks to other countries at lower prices, resulting in negative impact on cotton prices in Pakistan.
He said that Indian Government had announced to raise cotton support prices up to 28 percent for fiscal year 2012-2013. Cotton traders said on the demand of growers, Indian government had decided to enhance the support price of seed-cotton (phutti) for the year 2012-13.
According to announcement, Indian Committee for Economic Affairs fixed support price for Indian long staple seed-cotton at Indian rupees 1,560 per 40-kg, up by 18.18 percent. In term of Pak rupee it will be 2,575 per 40-kg.
Source : yarnsandfibers.com