Tight Supply Of Long Staple Cotton Worldwide

Supplement:

An economist said that since the beginning of the year, due to the limited supply and high demand, India has all

Kavita Chacko, economist at NCDEX knowledge management department, said that cotton prices were at an all-time high in June because of the strong demand of textile mills and Asian yarn producers in June.

The supply of raw materials is generally in short supply. Meanwhile, the volume of purchases from China is particularly strong, leading to a surge in cotton prices in the spot market.

In June 2010, the price of Shankar 6 cotton was about 29500 rupees (candy 356 kg).

After the government lifted the ban on cotton exports, domestic prices were supported by strong export demand.

Cotton prices surged to a record high in June, mainly due to limited supply and huge demand.

The upward trend in price is supported by the surge in demand for raw materials in China.

Chaco pointed out that the India government has partially lifted the cotton export restriction and allowed registered exporters to export cotton to overseas from July 2, 2010.

The government may also set limits on the annual export volume of cotton in India, and announce the number of exports and domestic consumption ahead of schedule.

In April, the government restricted the export of raw cotton for the purpose of helping the domestic labor intensive textile industry, and cotton prices soared because of the global cotton production reduction.

Chaco said that in the past 2009-10 years cotton harvest in India has become an important cotton exporter in the world's cotton market.

The distribution of monsoon rainfall in June was lower than expected, and sowing in many parts of northern China was affected.

However, the recent monsoon rainfall has covered most parts of the country, and cotton seeding progress has been accelerated.

As of June 2010, cotton planting area increased by 19% over the same period last year.

According to the report of the Cotton Development Council, the cotton planting area is slightly larger than 2 million 600 thousand hectares.

India's cotton production is forecast to increase sharply this year, because farmers see better returns and turn to cotton growing.

India's Cotton Corp expects that one of India's largest cotton producers, Gujarat, will grow by ten percent.

The agencies predict that domestic cotton output will exceed 30 million in 2010-11 years.