Tight Domestic Supply Led To A Rise In Cotton Prices In India (7.02)

Cotton prices continued to rise in India during the week ending Wednesday, due to tight supply in the domestic market.

Shanker-6 cotton prices are reported at 28000 rupees / candy, compared to 27000 rupees / candy. candy equivalent to 355.62 kg last Wednesday.

Cotton prices are expected to increase to 29000 rupees / candy. until the end of the current farming year in September 30th.

The carry over inventory in September 30th is expected to total 4 million 300 thousand packages, less than the 6 million package needed to maintain the competitiveness of cotton prices.

A cotton trader in Mumbai said that because of the high price this year, inventory is bound to decrease.

According to the government's estimate, in the market year ending in September 30th, India is expected to export 8 million 500 thousand bales of cotton, up from 5 million 800 thousand packages a year ago.

Cotton Traders in Mumbai say that some people expect exports to be 1 million more than the government estimates.

According to insiders, exporters have already signed a 500 thousand package export contract from the new cotton harvested in -12 November, at a higher price.

At the same time, the new cotton planting in the North has been completed, most of which are irrigated cotton fields. In the main cotton production Maharashtra of India, with the advent of the rainy season, cotton planting has begun.

Cotton planting progress accelerated last week, but slightly lower than last year's planting area of 1 million 510 thousand hectares in June 27th.

From next year October, cotton production in India is expected to increase by 3% to 32 million 500 thousand bales.

India cotton planting time in June -7 months, picking time from October.