The Government of India will soon sign a Memorandum of Understanding (MoU) with Bangladesh to export 1 million bales of cotton every year.
The MoU is going to enable a G-2-G transaction. The MoU will be signed soon and will be handled by Cotton Corporation of India Limited. India produces 6,188,000 tons of cotton annually – around 26% of global cotton production.
Moreover, Bangladesh is a good market for Indian cotton; annually imports 2 to 3 million (each weighing around 120 kg) bales. This is the first time that Cotton Corporation of India Limited (CCI) is trying to enter the export market directly.
Pradeep Kumar Agarwal, CMD, Cotton Corporation of India Limited said, “This MoU will facilitate a Government-to-Government transaction. The CCI will handle the exports to Bangladesh.”
The contract is in the final stages with both the governments actively negotiating the deals. Bangladesh is concerned with the government export guarantee, arguing that the government of India takes a lot of time with the supplies whereas the private exporters are quite prompt.
CCI obtained around 100 bales of cotton in the cotton season 2020-21 at an MSP of Rs 5,515 per quintal for medium staple cotton and Rs 5,825 per quintal for long-staple cotton.