India's cotton exports, which have surged this year, are likely to taper off and no new sales are expected in the current crop year because of robust domestic demand, traders said on Thursday.
Dealers have sold 800,000 bales, of 170 kg each, top quality cotton mainly to China, Pakistan and Bangladesh in 2003/04 (October-September) because of a good quality crop and higher international prices.
India has been selling only around 50,000 bales annually in the past five years due to lower global prices.
"This year we have done well in the export market because our quality was good and international prices were high," D.K. Nair, secretary general of the Indian Cotton Mills Association, told Reuters.
"Whatever good quality of cotton we had has either been exported or purchased by local mills," a leading Bombay-based trader said. "Nothing much is up for sale." Traders said China had bought around 400,000 bales and Pakistan and Bangladesh have imported 150,000 bales each.
India is likely to produce 16.5 to 16.8 million bales in 2003/04 compared with 13.6 million bales a year ago due to the best monsoon rains in a decade. Of this, traders said around 14 million bales have already been sold and only medium and short staple varieties were available in the market.
Cotton is sown in June and July and harvesting begins in October. India, which has been importing around two million bales annually, is expected to buy only 200,000 bales this year because of the availability of good quality cotton from the local crop.
"Some mills in southern India have imported cotton because of the requirement of extra-long staple which is not grown much in the country," Nair said. Traders said cotton prices have been stable in the past month and were expected to remain at these levels in the near future.