India’s forward export contracts of cotton have more than doubled from about seven lakh bales in September 2017, driven by increased demand from China, lower domestic prices and depreciation of the rupee.
Exports would go up in this financial year despite expected projections of tight supplies and increase in minimum support price (MSP) by the government, industry sources said.
"We have signed export contracts for 14-16 lakh bales (of 170 kg each). About 75% of these contracts are for export to China,” a top official of Cotton Association of India (CAI) said.
“The 25% duty imposed by China on cotton imports from the USA will make Indian cotton more affordable to Chinese buyers,” the association said.
Bangladesh and Vietnam are the other buyers that have signed some forward contracts for Indian cotton.