India Cotton Farmers Hoard Stocks And Expect Prices To Rise

Traders' recent abnormal seasonal rains have partially cut cotton's cotton production and hurt cotton production.

Cotton growers have awaken and expect better rebates, an official of the International Trade Organization said today.

They know that prices have a good chance of rising, which is why they (cotton growers) control inventory.

On -12 5 October 1st, the total cotton arrival in India reached 7 million packages (1 =170 kg), and the cotton arrived 7 million 200 thousand packs a year ago.

In Gujarat, the cotton market dropped by 15% to 2 million 300 thousand bales in the main cotton market.

The cotton arrival in Maharashtra is also weak, with only a slight increase in cotton arrival in central and Ande Laban.

Cotton arrived at a low level. Even though cotton farmers in India started to get better cotton production than last year, cotton production reached 32 million 500 thousand bales this year, and last year's cotton harvest was 29 million 500 thousand packs.

Most farmers recovered their cash costs, because cotton prices almost doubled this year, and they did not rush to sell their cotton, a dealer said.

Cotton prices began to rise as exporters accepted the contract and tried to issue their goods before the deadline of December 15th.

In the current cotton season, the India government restricted the export quota of cotton to 5 million 500 thousand packs and set the deadline for December 15th to export cotton.

The industry believes that traders in India can only issue 300-350 million bales of cotton, because domestic prices are significantly higher than last year's level, resulting in difficulties in procurement. An official of India's Cotton Corp said that the price of 6 kinds of cotton was the highest 45500 rupee / Candy (1 Candy =356 kg). Last year, cotton prices were as low as 32200 rupees / Candy.