India cotton import at record high.

India cotton imports have surged as global purchases seemed more lucrative, and as the strength in the rupee against the dollar encouraged mills, particularly those in south India, to aggressively import the commodity. Imports from African countries work out cheaper for mills in south India, as opposed to purchases from traders in Gujarat, Rajasthan and Maharashtra at a premium, and the added transportation cost. There was a twist in the tale in April when changing market dynamics due to a rise in global and a fall in domestic prices brought imports to a sudden halt, leaving estimates haywire. So far, 2.6-2.7 million bales have been contracted for the current season. We expect deals for another 0.3-0.4 million bales coming in the current season. Imports revive (from current lull) because of the quality issues that the mills have been facing this year. From high moisture level to contamination and adulteration, Indian cotton faces several quality issues, forcing premium textile companies to depend on imports.