• Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
Wednesday, February 1, 2023
No Result
View All Result
SUBSCRIBE
The Outlooker
27 °c
Delhi
  • Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
  • Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
No Result
View All Result
The Outlooker
No Result
View All Result
  • National
  • Politics
  • Opinion
  • Business
  • Science
  • World
  • Health
Home Business

Cotton exports likely to jump 40% in 2020-21

by The Outlooker Web Desk
December 2, 2020
in Business
0
Cotton exports likely to jump 40% in 2020-21
1.8k
SHARES
12.9k
VIEWS
Share on FacebookShare on Twitter

India had exported nearly 50 lakh bales in the previous season.

Cotton exports are likely to jump 40% in 2020-21 to 7 million bales, the highest in seven years, as depreciation of the rupee and a rally in global prices have allowed exporters to clinch contracts. India had exported nearly 50 lakh bales in the previous season.

Yarn exports, however, are declining. Senior officials from the South India Mills Association (SIMA) said exports of cotton yarn reached its peak in 2013-14 (1,313.43 million kg), after which it sharply declined. During 2019-20, exports further fell to 959 million kg, primarily because of absence of incentives, which were given to the sector earlier.

“The lockdown caused by the COVID-19 pandemic in India and across the globe from mid-March 2020 has created an unprecedented crisis. This will undoubtedly have a very serious impact on the Indian cotton textiles and clothing industry, thereby affecting cotton demand. This would also have very serious impact on the CCI that has a stock over 100 lakh bales procured under the MSP during the current cotton season at prices much higher than current market prices,” Dr K Selvaraju, secretary general, SIMA, said, declining to speculate on the 2020-21 yarn export figures.

Kapas prices are currently in the Rs 5,500-5,600 range, while the MSP for cotton is currently at Rs 5,800 per quintal.

Selvaraju said the cotton yarn spinning sector is completely dependent on production and prices of cotton. “Over the past few years, not only production of cotton decreased in India, but also its prices have increased. Cotton production in India has reduced from 398 lakh bales in 2013-14 to 357 lakh bales in 2019-20. Prices of raw cotton increased by over 10% during the period. This has put considerable burden on the spinning industry. Price increase in cotton yarn has not been sufficient enough to match the increasing cost of raw materials and highly fluctuating cotton prices,” he pointed out.

India’s domestic consumption of cotton yarn is well below its production and its exports are also declining (from 1,313.43 million kg in 2013-14 to 959.79 million kg 2019-20 at a CAGR of about (-) 3%), he said. Both low domestic consumption and decline in exports are leading to surplus production of cotton yarn in the country, which is harming the spinning industry, Selvaraju pointed out.

Significantly, the share of Vietnam in China’s total imports of cotton yarn has increased from 7.61% in 2009 to 36.66% in 2018, while that of India has increased from 7.75% to 21.74% during the same period, he said.

India also faces duty challenges in export markets vis-à-vis competing countries. Pakistan and Bangladesh levy higher rates of duty on Indian yarn, while they enjoy duty free or concessional duty access in India. India is lagging in cotton exports to major markets due to a duty disadvantage vis-a-vis Bangladesh, Vietnam and Pakistan. Countries like Bangladesh and Vietnam enjoy duty-free access in world’s largest cotton yarn markets such as China while Indian exporters have to pay duties.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

The Outlooker is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

The Outlooker Web Desk

The Outlooker Web Desk

Next Post
PM Narendra Modi Meets Chief Ministers Of 8 States to Discuss Covid, Vaccine: 10 Points

Congress's "Jumla" Attack On Centre Over Vaccine Remark

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Drugs Worth Rs 2.68 Crore Seized In Manipur
National

Drugs Worth Rs 2.68 Crore Seized In Manipur

February 1, 2023
UP Woman Beats Man In Park Over Dispute, Investigation Underway: Cops
National

Maharashtra Woman Beaten, Paraded With Garland Of Shoes For Questioning Husband’s Death

January 31, 2023
Padma Awardee Author Sudha Murty’s 4-Point Advice To Son-In-Law Rishi Sunak
National

Padma Awardee Author Sudha Murty’s 4-Point Advice To Son-In-Law Rishi Sunak

January 31, 2023
Nitish Kumar’s Sulking Aide Upendra Kushwaha Recalls A 1994 Challenge To Lalu Yadav
National

Nitish Kumar’s Sulking Aide Upendra Kushwaha Recalls A 1994 Challenge To Lalu Yadav

January 31, 2023

Connect with us

No Result
View All Result

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020

Category

  • Artistic
  • Business
  • Crypto
  • Design
  • Entertainment
  • Fashion
  • featured
  • Food
  • Gaming
  • Health
  • Human
  • Lifestyle
  • Movie
  • Music
  • National
  • Opinion
  • Politics
  • Science
  • Spaces
  • Sports
  • Tech
  • Travel
  • Uncategorized
  • World

Recent Posts

  • Drugs Worth Rs 2.68 Crore Seized In Manipur
  • Maharashtra Woman Beaten, Paraded With Garland Of Shoes For Questioning Husband’s Death
  • Padma Awardee Author Sudha Murty’s 4-Point Advice To Son-In-Law Rishi Sunak

About Us

The Outlooker

The Outlooker is your source of authentic, hand-picked news, stories, analysis from India & the World.

  • Terms Of Service
  • Privacy Policy
  • About us
  • Submit your story
  • Contact

© 2019-2021 The Outlooker. All rights reserved.

No Result
View All Result
  • Home
  • Politics
  • World
  • Business
  • Science
  • National
  • Entertainment
  • Gaming
  • Movie
  • Music
  • Sports
  • Fashion
  • Lifestyle
  • Travel
  • Tech
  • Health
  • Food

© 2019-2021 The Outlooker. All rights reserved.