India's cotton exporters have signed
contracts to ship 500,000 bales (85,000 tonnes) of their new season harvest to
China as the world's biggest consumer of the fibre looks to raise its imports
in the next crop year, industry officials said.
Exporters in India, the world's biggest producer
of Cotton, usually start selling new season Cotton from end-August, after
estimating the nation's crop size. But robust demand from China and higher
prices have prompted Indian exporters to sign deals in advance, the officials
"Chinese demand is very robust. They are
ready to book Indian cotton. But Indian traders don't have a clear idea about
the upcoming crop size and prices, so they are hesitant to commit to large
amounts," said a top official of the Cotton Association of India (CAI).
Indian Cotton was sold at around 86 to 92 cents
per pound on a cost and freight basis (C&F) to China, for shipments in
November and December, trade sources said.
China will import 1.4 million tonnes of Cotton
in the 2018/19 crop year, its agriculture ministry said in a statement, raising
its forecast from a previous estimate of 1.2 million tonnes due to a poor local
India's cotton exports are likely to jump nearly 30 percent from
the previous year to a four-year high of 7.5 million bales (1.3 million tonnes)
in the 2017/18 crop year, which ends on September 30.
Amid the robust export demand, cotton sowing in India has been
delayed by nearly a fortnight in central and southern India due to patchy
rainfall, but it is expected to pick up in coming weeks, said the official of CAI