Cotton Prices Are Changing Rapidly In India

Domestic and foreign markets have strong demand for Shankar-6 cotton in Gujarat, India. The current offer is at 30500-31000 rupees / candy (1 candy = 356 kg).

Experts say another reason is that the stock in the market in the past year is very low.

At the same time, due to

Mr NP Hirani, President of Maharashtra co operative cotton growers association, said cotton production was 32 million 500 thousand packs last year, and this year's output is expected to record a record of 40 million bags.

Review:

Even without the news of India's suspension of cotton export registration, CIS Textile Co., Ltd. has to consider gradually reducing its export business.

"Raw materials, personnel salaries, hydropower and energy......"

All costs are rising, and the export price of the product is not going up. "

Liu Zhuoxin, vice president of the company, reluctantly said that at present, the export business has become smaller and smaller in the business share of the enterprise, and most of the energy has already been put on the domestic market.

"We do not want to export. We are also forced.

".

Even worse for enterprises, India announced the suspension of cotton export registration from April 19th, and the specific recovery time will be announced later.

Some analysts believe that as India cotton has become China's largest source of imports, its stop export policy will make China's cotton supply and demand situation become more intense, and textile enterprises will have to face more expensive cotton prices.

The international cotton market is not the most expensive. Only the more expensive India textile Ministry said the move was aimed at stabilizing the soaring cotton prices in China. But before long, India had just imposed export duties on cotton.

"It is normal to consider the protection of its own textile industry."

Zhu Xianfeng, the price monitoring center of the NDRC, believes that global cotton production has been insufficient for four consecutive years, and last year's output dropped to its lowest level in 5 years.

Similarly, as a newly emerging country, the textile industry that needs a lot of cheap labor is also looked upon by the government of India.

According to the planning of India textile department, in 2012, the proportion of India in the global garment export market should be increased to 7%.

This goal has also led to the rise of cotton consumption and the rise of cotton prices in India.

It is reported that India's decision involves raw cotton, waste cotton, combed cotton and carding cotton and other export varieties.

As the runner up of world cotton output, India's decision has caused a lot of "vibration" in the international cotton market.

The news came as a result of worries about the tight supply of cotton in the international market, and New York cotton futures prices soared to a new high in two years.

"At present, China's cotton market is in a period of shortage of resources. Next, before the new cotton comes into the market, it is faced with a period of blue and white. The cotton gap can be diluted in large quantities, and now the gap will be bigger and bigger."

Zhang Xiangjun, an interim researcher in Beijing, said that when India cotton was no longer the source of China's imports, it was inevitable to increase imports of American cotton at home.

But the problem is that the US cotton will become more scarce because of the "exit" of India cotton.

In fact, according to the prediction of the US Department of agriculture, the world cotton inventory in 2009/10 is expected to be only 1 million 110 thousand tons, down 19% from the beginning of the year, the lowest level after 2003/04.

Zhu Jianfeng believes that the price rise of cotton is definitely inevitable, but the price increase is also a kind of market behavior, which is determined by the relationship between supply and demand.

Despite the recovery of output and demand in the international market after the financial crisis, a certain amount of inventory before the enterprise will offset the impact of some raw material prices. "The next price increase and when India will lift the export restrictions depends on the supply and demand changes in the global textile market."