Cotton Prices In India Rose By &Nbsp Due To Exports, But The Prospects Were Cautious.

Due to the resumption of exports,

In May 21st, India allowed the export of cotton under the license system. When the new cotton planting was just beginning, the government stopped the registration of exports in order to curb the rise in domestic cotton prices.

An official of the Federal Ministry of textiles said that some confusion in exports has now been clarified, and the government has already issued some permits for the export of cotton in Pakistan.

Pakistan media reported that India has issued licenses to 263000 bales of cotton exported to Pakistan.

In the prohibition

Cotton prices rose 5% in India within a week after the permitted export.

India is the main exporter of cotton. When the export registration was stopped a month ago, India had exported 7 million 360 thousand bales of cotton (170 kilograms) and registered 8 million 530 thousand packages.

India is the second largest cotton producing country, consuming country and cotton exporting country. About 60% of cotton is exported to China this year, and China is the largest cotton consuming country.

Dhiren N. Sheth, President of India Cotton Association, said that China's demand is still strong, and we need to observe the seasonality of China's procurement.

China has recently increased its import quota to meet the expanding demand of the textile industry.

Last week, China announced an additional import quota of 800 thousand tons. In addition, it announced 1 million 890 thousand tons earlier this year, and the government may announce more quotas.

But in the long run, the effect of export licenses needs to be treated with caution.

Analysts and industry sources say the good news is that exports will recover, but the bad news is that the government may adjust its export scale according to its own wishes.