"India is providing greater competition to the US as its fifth consecutive record crop gets even larger and consumption flattens," the USDA said in its latest report 'Cotton: World markets and trade'.
It said at the beginning of the 2007-08 marketing year, which runs from August to July, exports from the US were expected to be very competitive because of large carry over stocks. After the first three months, the US shipped 36 lakh bales, which were more than double the volume it had exported in the previous season.
"Although, the second half of the year are traditionally the stronger period for exports, recent developments have diminished expectations," it noted.
As India has increased its competitiveness, the US is losing its market share in countries like Indonesia and Pakistan, USDA said, adding the import demand has also shrinked from countries such as Turkey, Thailand, and Taiwan where India is not a major competitor.
According to USDA report, India's cotton exports have been revised upward to 26 lakh bales. While its production is pegged at 245 lakh bales for 2007-08 marketing year, up by 12.38 per cent from previous year.
"Since the July forecast, the crop is up by 20 lakh bales while consumption has declined by 20 lakh bales. As a result of this the export forecast for India is now pegged at 26 lakh bales more than the July forecast," the report said, adding a large portion of additional exports from India are expected to move to China and Pakistan.
