Cotton imports see a jump in October

Cotton and waste cotton imports spiked last month, registering a 248% growth compared with October 2023, as per Confederation of Indian Textile Industry data.

“This is only the provisional data. We need to see the variety and volume of cotton imported. The imports are usually just 5%-7% of the total availability of cotton and the recent increase should not be a cause for worry,” said Siddhartha Rajagopal, Executive Director of the Cotton Textiles Export Promotion Council.

Apparel exports in October saw 35 % y-o-y growth and home textile shipments are bullish. There is a gradual shift of orders from Bangladesh. Almost 65 % of garment exports are cotton-based. Indian cotton prices have just come to moderate levels. As the apparel export orders increase, raw material availability at moderate prices is important for the industry, he said.

According to data shared by the Confederation of Indian Textile Industry, cotton and waste cotton imports increased from $36.68 million in October 2023 to $127.71 million last month.

Nishant Asher, secretary of the Indian Cotton Federation, said that ELS and Australian cotton imports are duty free and there are purchases under Advance Authorisation scheme. Brazil has emerged as the largest exporter of cotton globally. With the lowest cost of cotton production, Brazil is able to sell cotton internationally at very low prices, he said.