CAI: India's cotton exports to rise on Bangladesh demand.

India's cotton exports are expected to jump by two-thirds in the 2023-24 season, reaching 26 lakh bales (170 kg each) due to rising demand from Bangladeshi mills. This marks a significant increase from the previous season's 15.5 lakh bales.

The rise is attributed to delays in Bangladeshi imports from the US and Brazil, prompting them to turn to India for quicker deliveries via land routes. Bangladesh mills are reportedly buying around 1-1.5 lakh bales of Indian cotton monthly.

The Cotton Association of India (CAI) has also revised its pressing estimates upwards to 317.70 lakh bales for the current season, driven by farmers offloading old stocks in Central India. However, this remains lower than the previous year's figure of 318.9 lakh bales.

Overall cotton supply is projected to be higher this season at 363 lakh bales, compared to 355.4 lakh bales last year. This includes factors like increased pressing, imports, and carry forward stocks.

Domestic cotton demand is estimated at 317 lakh bales, with a significant rise in consumption by the MSME sector (100 lakh bales) compared to the previous year (15 lakh bales). Non-MSME demand is expected to be steady at 201 lakh bales.

With spinning mills operating at near-capacity levels (around 90 per cent), particularly in Central and North India, CAI anticipates lower closing stocks by the end of September (20.50 lakh bales) compared to the previous season (28.90 lakh bales).