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India’s Cotton Corp to Export Cotton Stock to Bangladesh and Vietnam

Published: June 20, 2020
Author: Millionaires

 

“The state-run Cotton Corp of India is planning to export cotton stocks procured in 2018-20 (Oct-Sep) marketing years to Bangladesh and Vietnam”, Chairman and Managing Director Pradeep Agarwal said.

“However, the export quantum will be decided as per mutual agreement. We are in close touch with Bangladesh and Vietnam”, he Said.

India has a logistical advantage in exporting to Bangladesh as shipments take the least time. It will be the key focus area along with Vietnam, according to Agarwal.

 

Bangladesh’s annual cotton consumption is 8.5 million-9.0 million bales of which the country imports around 2.5 million bales every year from India.

Cotton Corp is the government’s nodal agency for procurement under the minimum support price scheme. The agency has so far procured around 10.0 million bales in 2019-20 (Oct-Sep) season. In 2018-19 season it managed to buy only 900,000 bales as spot prices of the fiber were more than its support prices for most of the season.

Exports of around 3.8 million bales have already been shipped in the current season, which started on Oct 1, and another 1.2 million bales will be exported over the next three-four months.

Currently, prices of Indian cotton are the cheapest in the world, making foreign sales economically viable.

For 2019-20, the Cotton Advisory Board had pegged India’s exports at 5.0 mln bales, as against 4.4 mln bales in the previous marketing year.

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