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Pakistan becomes Top Buyer of Indian Cotton
Feb 08, 2016

Pakistan has replaced Bangladesh to emerge as largest buyer of Indian cotton in October-December 2015 quarter due to a sharp decline in its domestic availability on crop damage hit by white flies virus.

  • The available data showed Pakistan imported 1.66 million bales (1 bale=170 kgs) of cotton from India which works out to 47% of India’s overall fibre exports to the tune of 3.52 million bales.

  • In the same quarter last year, however, India’s total cotton export 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.

  • 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.

  • 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.

  • The 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.

  • 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. 


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