Indian traders have been struggling to sign export contracts for the new season crop as local prices are prevailing above global prices after New Delhi raised the minimum buying price to support farmers, an industry official said.
Lower exports by the world's biggest cotton producer in 2019/20 season starting from Oct. 1 could support global prices and help rivals such as the United States and Brazil increase cargoes to key Asian buyers such as Vietnam, Bangladesh and Pakistan.
"Indian supplies are uncompetitive due to higher prices. Buyers are giving preference to Brazil and U.S.," Arun Sekhsaria, managing director of exporter D.D. Cotton.
Indian cotton is being offered around 77 cents per lb, cost and freight-basis, to buyers in Bangladesh and Vietnam for November to December shipments, versus around 70 cents for those from the United Sates and Brazil, dealers said on the sidelines of a conference.
Traders usually seal contracts to export around 800,000 bales before the start of the season on Oct. 1, but this year they managed to sell around 300,000 bales for shipments, said a Mumbai-based dealer with a global trading firm.
"Bangladesh, Vietnam and few other Asian buyers bought Indian cotton around 77 cents, but now even they are switched to Brazil and the United States," he said.
India has raised minimum raw cotton buying price by 38% in two years to 5,550 Indian rupees per 100 kg, even as global were corrected to the lowest level in 3-1/2 years.
0 comments:
Post a Comment