Cleared/AnilCoimbatore: Textile mills have started to import cotton from West Africa and the US as the landed costs are on par with the prevailing market price in the country.The textile mills have contracted to import about 15 lakh bales (a bale is 170kg) of cotton as its prices are on the rise in the country, industry officials said.Cotton prices have jumped by Rs 6,000 per candy (a candy is 355kg) or 15.8% since November. Price of the popular Shankar-6 cotton had on an average increased by Rs 2,500 per candy in the past two months and is now trading at Rs 44,000 per candy."There is a spurt in import contracts as domestic and imported cotton prices are more or less at same levels," said K Selvaraju, secretary general, Southern India Mills' Association (SIMA)."Textile mills had been entering into contracts to import cotton, mostly from West Africa, for the past couple of days," said Atul P Asher, secretary, Indian Cotton Federation (ICF)."Imported cotton appears to be attractive due to better yarn realisation, productivity and quality," said M Senthilkumar, chairman, SIMA. The Cotlook A index, the global benchmark for cotton prices, which by and large ruled at 79 cents per pound in October, is now quoting about 87 cents.While the Cotton Advisory Board (CAB), which comprises representatives from the textile industry, trade, ginners and government officials, has estimated that cotton imports would be 17 lakh bales in 2016-17 season (October-September), industry officials said it would be at least double that projection."It might touch 30 lakh bales at the end of the season, if the present trend of import continues," officials said. Incidentally, mills had imported cotton from West Africa last year too after the sharp increase in prices in the domestic market.SIMA has asked spinning mills not to panic as cotton availability, both in domestic and global markets, is comfortable. Cotton production in India for the 2016-17 season is pegged at around 345 lakh bales as against 351 lakh bales estimated by the CAB last October.The cotton arrival as on March 20 was around 250 lakh bales, compared to 260 lakh bales during the same period last year. Textile mills in the country consume around 25 lakh bales of cotton per month. Mills in the south alone use about 10 lakh bales a month. "Mill consumption might be around 295 lakh bales as against 303 lakh bales estimated by CAB," Senthilkumar said.Exports are also likely to be lower than CAB estimates as desi cotton prices are not currently attractive in the international market, he said. Exports would be only around 40 lakh bales, compared to 50 lakh bales estimated by CAB, the SIMA chairman said.A bumper cotton crop in Australia and the US would also help in keeping prices under check, he said. "There is a significant increase in cotton crop size in Australia, expected to be around 45 lakh bales as against 28 lakh bales last year, and 18% increase in crop in the US. Since China has restricted its imports, global cotton position is very comfortable," Senthilkumar said.

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