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    India Will Continue To Restrict Exports Of Cotton And Cotton Yarn.

    2010/12/25 15:28:00 40

    India Cotton Export

    The government of India does not seem to change the cotton and cotton yarn policy because it has 60 million farmers and cotton and cotton yarn.

    Worker

    Provide livelihoods.


    Last Wednesday,

    India

    The government has restricted the export of cotton yarn because of soaring prices.

    Rahul Khullar, the commerce minister, said at a press conference that exports have been restricted and are now required to be registered in advance.

    Although currently allowed

    Exit

    The maximum quantity is 72 million kilograms, but the number of restricted exports will be re examined next month.


    Earlier, the government allowed 5 million 500 thousand bales of cotton exported, but only 2 million 500 thousand packages were exported. It is expected that the new registration rules will be announced within a week.

    The cotton merchants who had received the certificate of textile Commissioner earlier had to queue up for registration at the General Administration of foreign trade and obtain export permits again.


    As global prices rose 85% in the past nine months, India began to restrict yarn exports.

    Khullar said that all sectors of the textile industry (yarn manufacturers, weaving and garment manufacturers) are facing fierce competition.

    Yarn manufacturers oppose restrictions on exports, but restrictions on exports ease the pressure on garment manufacturers.


    The India government's announcement made exporters full of hope, but cotton prices in the domestic market surged 8% in four days.

    The price of cotton in Gujarat rose 3500 rupees to 43000 rupees / candy (356 kg).

    On Tuesday, cotton prices in the international market also hit a new high of 159.12 cents / pound.


    International market prices surged 112.27% from 74.96 cents / pound in December 21, 2009.

    Domestic market prices hit a record high of 47000 rupees in early November, and then fell to 39500 rupees / candy last Tuesday.


    The reason for the rise in cotton prices is the increase in speculation and the market.

    Never seen such a dramatic price increase in history.

    It is hard to predict the market trend because there is plenty of liquidity.


    The latest notice enables exporters to be busy buying goods.

    The rush mills replenished the price of the cotton mill.

    Last Wednesday, when the deadline for export expires, cotton ginning plants with raw cotton sell cotton at 39200-39500 rupees / candy.


    Last Tuesday, market sentiment was very weak. Market participants worried that prices would continue to fall, selling cotton at discounted prices and falling to 37000 rupees.

    However, the government announced that the situation changed and prices began to rise sharply.


    The market opened strongly on Monday, and prices are beginning to stabilize.

    Cotton traders expect no drastic adjustment in the near future, as the international market remains strong and remains at a new high.

    The quantity of cotton arrived at 225 thousand packs, and cotton traders expected no shortage of supply.

    The only factor that makes the market change direction is government policy.

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