India’s cotton exports witnessed a remarkable surge during the October-March period of the 2023-24 season, according to the latest estimates from the Cotton Association of India (CAI). The apex trade body reported a staggering 137 percent increase, with exports reaching 18 lakh bales, compared to just 7.59 lakh bales exported during the same six-month period in the previous year.
The significant rise in exports during the initial half of the current season stands out, especially when juxtaposed with India’s total cotton exports of 15.59 lakh bales for the entire 2022-23 season, concluding in September 2023.
The massive 137 per cent year-over-year increase in exports from October 2023 to March 2024 can be attributed to several factors according to trade experts. Indian cotton prices remained very competitive on the global market for a large portion of this period, making Indian supplies an attractive option for overseas buyers.
CAI President Atul Ganatra noted that for some time Indian cotton prices were lower by Rs 3,000-4,000 per candy compared to prevailing international prices based on the Cotlook Index benchmark. However, the CAI cautioned that with global cotton prices easing in recent weeks, the pricing advantage for Indian supplies has now neutralised. Indian cotton is currently priced at par or slightly higher than global benchmarks.
Even with exports expected to moderate in the coming months, CAI still projects India’s total cotton exports for the full 2023-24 season to surpass 22 lakh bales, well above last season’s 15.59 lakh bales.
