Cotton exports from India have gained momentum due to a depreciation in the rupee and as prices have rallied in overseas markets, prompting Asian buyers such as China, Bangladesh and Vietnam to raise Indian purchases, dealers said.
Rising exports from India could put pressure on global prices for cotton, which are trading near their highest in eight months, and hurt shipments from rivals such as the United States and Brazil to key Asian buyers. India has shipped 1 million cotton bales since the 2019/20 marketing year started on October 1 and another 700,000 bales have been contracted for shipment in January and February. Until few weeks ago, Indian traders had been struggling to sign export contracts as local prices exceeded global prices.
Bangladesh and China were active buyers, while Vietnam and Indonesia are making small purchases, according to traders.