Reuters – Tight cotton supplies in the local market and lower prices overseas have prompted Indian textile mills to ramp up imports, which are likely to treble in the year ending Sept. 30, 2012, industry officials told Reuters on Thursday.
Mills in the world’s second biggest cotton producer have already imported 500,000 bales and have signed contracts for around 1 million bales at 75-80 cents per lb, compared with the local price of about 88 cents, dealers said.
“Indian textile companies are importing cotton, taking advantage of cheaper prices in the international market. Cotton imports may touch 1.5 million bales,” Dhiren Sheth, president of the Cotton Association of India told Reuters.
India has exported 11.5 million cotton bales of 170 kg each so far in the 2011/12 season that began on Oct. 1.
The country’s cotton exports in 2012/13 are likely to be hit as poor rainfall in top producing Gujarat state is set to trim production, said Dharmesh Lakhani, a trader and exporter based in Rajkot, Gujarat.
(Reporting by Rajendra Jadhav and Meenakshi Sharma; editing by Sunil Nair)