Indian cotton exports to Bangladesh set to increase 67 per cent in 2023-24.

India's cotton exports to Bangladesh are expected to jump by over two-thirds in the current cotton season (2023-24), which concludes in September, according to the Cotton Association of India (CAI). The CAI forecasts a significant increase in shipments to around 2.6 million bales (170 kg each), marking a 67.7per cent rise from the previous season's exports of 1.55 million bales.

This surge in exports is attributed to a rise in demand from Bangladeshi mills facing delays in their usual import shipments from the United States and Brazil. To meet their requirements, Bangladeshi mills are turning to India, with monthly purchases averaging between 100,000 and 150,000 bales. The swift delivery timeline of approximately five days by road makes India a favorable option for Bangladesh. "Bangladesh mills, which are operating on a tight supply, are purchasing Indian cotton as their shipments from the US and Brazil have been delayed," says Atul Ganatra, President. CAI.

The CAI has also revised its pressing estimates for the 2023-24 season upwards to 31.77 million bales, compared to the 30.9 million bales projected in February. This increase is primarily due to farmers in Central India offloading their old stocks. However, the current season's pressing estimates remain lower than the previous year's figure of 31.89 million bales.

Overall, the Indian cotton industry is experiencing a positive outlook for the 2023-24 season. Increased exports to Bangladesh, coupled with higher domestic demand projections, paint a promising picture for the sector.