Demand from Bangladesh catapulting Cotton exports

A remarkable amount of cotton has been exported by the private traders in last couple of months out of a total standing stock of around 5 million bales which had been on hold, this happens in consequence to the sharp rise in the demand from Bangladesh.

Researchers and industrialists are expecting an upward trend in the prices for the coming weeks, according to Gnanasekar Thaigarajan, director, Comtrendz Research (a consultancy services relating to commodity future), “Due to excess rainfall, there is more moisture in cotton and arrival of good quality cotton has been delayed, giving support to the prices and hence hence we expect prices to move up further in upcoming weeks.”

Cotton Corporation of India was resolute about not selling cotton at a loss and so it was holding nearly a third of the cotton that had produced in the country during the 2019-20 (October-September) season until May but started offering heavy discounts and selling at a loss since June which helped it liquidate close to 50% of its stock..

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Pradeep Agarwal, Chairman, Cotton Corporation of India informed that 57 lakh bales of 170 kilograms cotton each from the total stock of 115 lakh bales had been sold and most of the remaining stock will likely be sold during the next couple of months.