India Plans To Resume Cotton Free Trade In The New Market

　　 India plans to resume cotton in the new market starting in October 1st. free trade Let farmers benefit from the high price in the international market, so that they can increase their profits from the cotton harvest. However, the total export volume may be limited in order to provide adequate supply for domestic textile factories.

India is the second largest cotton exporter in the world, accounting for 1/5 of the world's cotton trade, and exports to Chinese factories. The government of India may issue a notice within two weeks. Cotton is expected to be re included in the list of free export products (OGL) and exempt from export duties. However, exporters may need to continue to register contracts with the government so that the government can monitor the actual export volume for a long time.

After the Cotton Advisory Committee confirms the estimated annual output and consumption of the next market, the government will notify the number of exported cotton in September. The Cotton Advisory Committee is composed of representatives from the government and industry.

In May of this year, the Ministry of textiles abruptly banned cotton and the pressure imposed by local industries. Cotton yarn Export and cancel export incentives. Measures 。

As the government is clearly willing to resume exports, all eyes are now on the 2010-11 year cotton supply and demand balance sheet. According to the current estimate, India's new year's sales spot is 4 million bales. The expected harvest of 32 million bales of new cotton, plus imports, is expected to supply 36 million bags of cotton. Among them, the textile mill (size) is expected to purchase 27 million packages, the remaining 9 million packets, the export source will be resolved from here.

Another big problem is the international price. The ICAC price model predicts that the average Cotlook A share index in 2010-11 will be 87 cents / pound. That means an increase of 12% over the previous year. The tight global cotton supply has led to a spiralling rise in cotton prices. Despite the bumper harvest of cotton, the tight global supply of cotton is unlikely to ease.

India's domestic price is expected to remain at 30000 rupees -35000 rupee / candy range.

This means that the price is 11 cents lower than the world market, which is more attractive to cotton traders.