Less than 5pc of cotton produced exported until March
The first six months of cotton marketing season 2024-25 ended with exports of just 2.31 lakh bales. These were 42% lower than the volume shipped in the same period of previous season. The first six months are considered to be the peak for cotton export. Post that, the volume is trivial and may a few lakh bales more until the season ends in September.
As the first six months are crucial and peak, cotton export has been extremely sluggish in recent years. In the last 10 seasons, only three have recorded growth 2017-18 (17%), 2020-21 (78%) and 2023-24 (139%). In 2021-22 season, 53.58 lakh bales were exported which had a decline of 51% season on season. These are actual numbers collated from all ports.
Compared with production
In 2015-16, over 21% of the cotton produced was exported in the first six months of the season. This rose to 26% in 2017-18 only to drop to 19% in 2018-19 despite production jumping 28% season on season. The share of export dwindle to 6% in 2022-23, inching up to 7% in 2023-24 only to decline to less than 5% in 2024-25. Here the moot question is – whether production number are accurate estimates?, since export numbers are real.
Export price (FOB) realisation averaged US cents 71.27 per pound in 2024-25. This was lower than Cotlook A index, the global spot price benchmark and higher compared to spot prices for benchmark Gujarat Shankar-6. During the period, Cotlook averaged US cents 79.82 per pound while Shankar-6 averaged US cents 80.90 per pound. So lower pricing advantage was lost noticeably.
