Cotton prices have declined by around 4 percent in the past 10 days and the yarn prices have also been sliding down owing to the outbreak of coronavirus in China.

India exports cotton yarn and a big chunk of it goes to China. A lot of deals that were done in January are being renegotiated or rescheduled.

Atul Ganatra, President of the Cotton Association of India (CAI), said though the export to China had slowed down, it should pick up in another 15 days.

“But exports to other countries such as Bangladesh, Vietnam and Indonesia are not affected. Per day we are doing export of 20,000-30,000 bales and there is no problem as such,” he said.

Ganatra further noted that it is incorrect to say that half of India's exports are going to China. “This year around 42 lakh bales will be exported from India and out of that 50 percent will be to Bangladesh. Only around 20 percent exports are going to China,” he said.

On cotton prices, Ganatra said, “In January, February and March, Indian prices were at Rs 47,000 spot level and in the second half, prices were under pressure and it has come down to Rs 40,000-42,000. However, this year, in the first half our prices are under pressure and today market is around Rs 39,500 spot. So, it looks like it is the bottom rate. Indian cotton is the cheapest in the world today. So, I do not see any further decline in prices.”

First Published:Feb 12, 2020 12:50 PM IST