India will export one million bales of cotton to Pakistan as the crop has been damaged in the neighbouring country due to floods, according to the industry body Cotton Association of India (CAI).
India is expected to have a surplus cotton stock of 13.8 million bales in 2015-16 marketing year (October-September) due to bumper crop and huge carry over stock.
“Pakistan has so far contracted to import 10 lakh bales of cotton from India. It is buying more cotton from us as the quality and quantity of the cotton crop has come down due to floods in Pakistan,” CAI President Dhiren Seth said.
The neighbouring country may import maximum quantity of cotton this year, he added.
Pakistan had imported 5 lakh bales in the entire 2014-15 marketing year.
Besides Pakistan, Seth said other countries like Bangladesh and Indonesia are also buying cotton from India. However, there is not much demand from main buyer China.
India exported a total of 6 million bales of cotton in 2014-15 marketing year. The country’s exports have come down sharply due to fall in Chinese demand.
According to latest estimates released by CAI, the country’s cotton output is pegged at 37.05 million bales in 2015-16, as against 38.27 million bales last year.
Domestic consumption is estimated at 32.5 million bales, while imports would be 1.4 million bales this year. The opening stock was 7.86 million bales. One bale is equal to 170 kg of cotton.