With the envisaged growth in cotton exports, Visakha Container Terminal (VCT) is poised to witness a noteworthy increase in the commoditys shipments in 40 feet containers that are traditionally surplus here. The Vijayawada and Guntur regions of Andhra Pradesh, which have high yields of cotton, have been utilising VCTs services for exports, and Khammam in Telangana is also likely to follow suit, VCT said in the April 2021 issue of its newsletter.
Cotton exports from India are on the verge of witnessing new highs given the increasing demand for the commodity globally. Growth is estimated at 30%-50%, with demand increase seen from China and Bangladesh, among others. Additionally, the US ban on Xinjiang (China) cotton has opened doors for the Indian variety. This increased demand and supply has brought smiles back to the faces of spinning mills and shippers as the losses are being recovered at a faster pace, the communiqu said.
The capacity utilisation of cotton mills, which was about 40%-50%, has reached as high as 80% with this new move by the US, it was pointed out.
According to the Cotton Corporation of India (CCI), estimates are that production may reach up to 75 lakh bales of 170 kg each this fiscal year, from the previous years 50 lakh bales. A factor that triggered the increased demand for Indian cotton has been the reduction in fibre prices. Indian cotton has been the cheapest amongst the producers; thus, countries like Vietnam, China, Bangladesh, Turkey, Indonesia, etc. have been reaching out to Indian shippers, the communiqu added.