India Cotton Has Made Us Cotton More And More Hurt.

Domestic cotton since the Spring Festival after the depth adjustment, from 33000 above the high point, so far has smoothed over half of the increase.

After the boom, the market returned to calm.

When

When prices are no longer sensitive to any fragmentary factors such as climate, fund, speculation and so on, as participants in the long-term layout of cotton market, we may have to deepen our thinking, strengthen the overall understanding of the market, capture the main basis of industry fluctuations from the global supply and demand situation, and make a more reasonable judgement of prices instead of passively becoming herd conformity.

The impact of cotton imports and exports is particularly important for China, which imports nearly half of its annual output. For a long time, the market has a relatively deep understanding of the first importer of cotton in the United States. The US Department of agriculture regularly announces production forecasts and weekly sales data, which are deeply concerned by the market. However, for the second largest importer, India

India is the second largest cotton producer and consumer in the world.

India's cotton growing area has ranked first in the world since the 50s of last century, and its planting area reached 10 million 600 thousand hectares in 2010, almost two times of the cotton planting area in China.

With the promotion of cotton varieties such as insect resistant cotton and cotton, and increasing cotton planting technology of cotton growers, its potential of increasing production can not be underestimated.

China's import of India cotton is only inferior to that of American cotton. With the increase of import volume of India cotton, more and more cotton and textile enterprises in China begin to pay attention to India.

Cotton and

Planting and technology

Cotton planting in India is the largest in the world, according to the International Cotton Advisory Committee (International Cotton Advisory Committee) data, India cotton planting area accounts for 30.4% of the total planting area, China's cotton planting area accounts for about 20.5% of all cultivated land and 9.9% in the United States.

Nevertheless, due to the low level of production per unit and low technology, India ranks the second largest in global production and still has a huge gap with China.

According to USDA data, China produced 6 million 967 thousand tons in 2009/2010 and 5 million 8 thousand tons in India, with a difference of nearly 2 million tons.

In 2010/2011, China's output is estimated to be 6 million 423 thousand tons, and India's 5 million 443 thousand tons.

According to USDA2009 statistics, although India attaches great importance to cotton cultivation, its per kilogram per kilogram per hectare is far below the average level of 766 kg / hectare in the world, not to mention the output per kilogram of 1331 kg / HA in China.

India cotton planting area is more concentrated, mainly distributed in 9 provinces in the Midwest, accounting for 99% of the total area of India, of which the largest is Punjab, accounting for 18% of the total area of the country. The smallest is Tamil Nadu, accounting for 4% of the total area of the country.

In recent years, due to the extensive use of genetically modified cotton seeds in India, the output per unit area and total output have increased considerably.

In the eighth year of planting genetically modified cotton (Bt) in India - 2009/2010, its planting area, planting ratio and farmers' numbers all hit a new high.

In the short span of 7 years from 2002 to 2008, Bt cotton brought 5 billion 100 million US dollars to India farmers, only 1 billion 800 million dollars in 2008, which made India pform from a cotton importing country to a major exporter. The yield per unit area increased by nearly 74%, from 301 kg / HA in 2002/2003 to 523 kg / HA in 2008/2009, and the total output increased by at least 61% (from 14 million to 22 million 500 thousand packages).

Another factor that has the greatest impact on India's output and yield is rainfall.

The rainfall in India is basically caused by monsoon, mostly from June to September.

Only about 35% of India's cotton is irrigated and the rest depends entirely on rainfall. Therefore, it is not difficult to understand why India's total output and yield are affected by the monsoon and rainfall.

The drought in 2008/2009 has led to a reduction in production for several consecutive years.

Export and variety quality

Thanks to the rapid development of India's economy in the past 10 years, India's domestic cotton demand has increased by 35%, and its total output has increased by 105%.

Therefore, India's internal supply and demand of cotton has generated surplus and stimulated exports.

From 2003/2004, India has become one of the major exporters of cotton in the world.

Domestic consumption is mainly based on low-end products, so its high-grade cotton has export demand.

Although the textile industry in India is developing very fast, there is still a gap in overall competitiveness compared with China.

According to the 2007/2008 data of the Ministry of Commerce of India, according to the amount, the largest buyer of cotton in India is China, accounting for 46.7%, followed by Pakistan 20.5% and Bangladesh 12.1%.

For our country, India cotton imports grew rapidly, and the increase in the first quarter of 2010 was as high as 1354.21%.

Therefore, domestic enterprises need to know more about the cotton industry in India and the characteristics and ranks of India cotton.

The advantages of India's cotton are: 1. the price is cheap, the population of India is large, the labor cost is low, the cotton price of the same grade is lower than that of other countries, which is the first condition for Chinese enterprises to choose India cotton; 2. the fiber length, the cotton processing way in India is mainly leather roller embossing, the fiber damage is small, its cotton fiber is smooth, the length is long, the short staple rate is low, the strength is higher; 3. varieties are various, satisfy the different spinning requirements.

Up to now, there is no uniform cotton grading standard in India, and seed cotton inspection is classified according to varieties and then according to length.

For the wrapped lint test, a larger enterprise has a HVI laboratory, while a small one is manual grading.

India cotton is divided into three categories according to its length. One is short fiber (short fiber and medium fiber), which belongs to India native cotton. It is generally below 23mm; two, medium length fiber (long and long fiber) belongs to the American type of upland cotton, and the fiber length is generally between 23mm and 33mm; three is the super long fiber dimension, belonging to upland cotton and Egyptian varieties, and the fiber length is usually above 33mm.

At present, the imported cotton varieties in India are mainly medium and long fiber varieties. The results of grade test are mostly 2 - 3, the length is 27mm - 31mm, and the micron value is between 3.6 and 4.5.

About 70% of India cotton varieties imported from China are Shankar-6, which is also a cotton variety with the largest export volume and the largest demand in the international market.

At the same time, India cotton also has some problems worthy of attention by domestic importers: 1. some kinds of impurities contain high content, and the impurity content of India cotton is about 2%, and some of them are as high as 4% - 5%, which greatly increases the cotton yarn content and yarn defects of the textile enterprises. This is because India's domestic cotton processing process is generally short of "Pi Qing" links, resulting in a high level of cotton impurity content; 2., the packaging is poor; most of the cotton packaging in India is packed with cloth bags, and the packaging is not solid and white, and the phenomenon of breaking packets is serious.

3. the suppliers of India are mixed up. The quality of imported cotton of the same type is quite different from that of the imported ones. The batches of good quality batches reach 2 grade, while the batches of poor quality batches are only 4 grade and 5 grade.

4. difficult to do long-term procurement plan, India cotton and New York futures loose contact, the price has its own characteristics and quotes, so the factory is difficult to make long-term procurement plan.

5. there are more exotic fibers. India is a developing country. Manual picking of cotton results in a higher content of foreign fibers. Some cotton contains special materials such as woven silk, feather, yarn, hair, rags, candy paper and so on. However, because of the way of processing leather roller, there is no excessive dispersion of the heterosexual fibers and the original state is more. Therefore, it is relatively easy for spinning mills to pick foreign fibers.

6., some cotton merchants in India have a bad reputation. Some cotton are seriously polluted by water stains cotton, oil stains and pollute cotton. Some of them have mildew and a lot of old cotton. 7., there is a common shortcoming. Because of the relatively hot climate in India, all the cotton ginning factories spray water mist into the workshop when processing cotton, resulting in large water content in the cotton processing plants in India. After long storage and long-distance pportation, water evaporation causes widespread problems of short weight, and some of them even form hardening.

Government regulation and support {page_break}

In February 2000, the India government set up the cotton Technical Committee (TMC) to improve domestic cotton production.

The association consists of four sub committees, namely, the cotton investigation and technology research branch (commonly known as one chapter), the technology and development communication branch (commonly known as the two chapter), the marketing promotion branch (commonly known as the three chapter), the processing pformation and renewal branch (commonly known as the four chapter).

The four sub sectors will promote cotton yield per unit area, improve cotton quality, improve cotton varieties and renew processing equipment in all links of cotton industry chain, and help cotton growers, processing plants and cotton merchants to get maximum benefits in cotton planting, harvesting, processing and market operation.

The aim of the association is to increase cotton yield per unit area and improve quality, especially fiber length, Ma Kelong Zhi, and strength through developing excellent varieties. By reducing cotton planting costs to cotton farmers by imparting knowledge of diseases and insect pests and scientific cotton management, cotton farmers can increase their income. By improving the infrastructure and equipment of the cotton market, impurities and pollution can be reduced.

There are two ways for cotton farmers to sell cotton in India. One is to go directly to the ginning factory, the two to the government's cotton market.

Although there is no direct subsidy policy, the government has established a cotton protection price to protect cotton farmers' income.

Every year, the government of India will announce the minimum protective price for all kinds of cotton. The protection price is fixed according to the planting cost and the appropriate income of cotton farmers.

When the seed cotton purchase price is lower than the minimum protective price, some designated cotton merchants will act as government agents to purchase cotton, thereby ensuring cotton growers' cotton planting income, so as to ensure that cotton production can be maintained at a certain level in the coming year.

Over the past two years, the purchase price of seed cotton has been higher than the lowest protective price of the government.

At the end of the summer of 2008, the India government raised the price of cotton purchase protection by 30% - 50% according to different varieties.

As a result, when cotton prices plummeted in 2008, local cotton growers cut exports and sold cotton seeds to India s National Agricultural Marketing Federation in India or India Corporation (of Corporation) in India.

Therefore, we see that India's exports in 2008/2009 decreased to 2 million bales from 7 million packages in 2007/2008.

Meanwhile, the local government has set export limits for cotton, but in recent years India has been debating whether to lift the ceiling.

Last year, India exported 8 million 300 thousand bags of cotton. At present, the export limit is 5 million 500 thousand packages (170 kilograms per pack), or 935 thousand tons.

According to the specific situation of the international cotton market, the India authorities sometimes even suspend the export of cotton, such as the April 2010 policy, which deserves the attention of the domestic importers and the cotton market participants.

In the second half of 2010, due to a rare historical high cotton market, India's Ministry of agriculture urged to increase export quotas in order to increase export earnings.

The Ministry of agriculture hopes to increase exports to at least 1 million 500 thousand packages to about 7 million bales. However, the India Textile Mills Association (SIMA) appealed to the government not to expand exports, because domestic cotton supply and demand will be faced with 2 million packages. Further easing exports will only lead to a blind rise in domestic cotton prices.

The Association believes that at least 5 million 500 thousand packages (170 kilograms) of final inventory will be needed this year.

However, at the end of February 2011, the India Cotton Advisory Committee predicted that only about 2 million 750 thousand bales would be available at the end of this year.

The focus of the textile department and the agriculture department is on cotton production and quantity.

Developing trend

In terms of production, in the future development, India cotton production exceeds China, becoming the first cotton producing country in the world.

India's cotton area is currently about 50% higher than that of China, and its output is about 30% less than that of China. According to the international agricultural biotechnology service organization (ISAAA), according to the current growth trend, India cotton production will surpass China in 2015, because the area of pgenic cotton cultivation in India is 86%, and China is only 69%.

On the export side, India cotton seized the market share and made us cotton more and more "hurt".

Since the sale of India cotton to China in late 2005, the annual sales rhythm of US cotton has been limited, especially in the period from 11 to April.

Prior to the large number of cotton entering India in China, the import share of US cotton in China remained above 60%, the average occupancy rate in recent years was 45%, while that in India rose from 0 to 20%.

In the course of trade with China, the reputation of the local cotton traders in India will play a key role in their sales. There will be two trends in the Sino Indian cotton trade. First, the International Cotton Traders participating in the acquisition, processing and trade integration in India are becoming more and more powerful in controlling India cotton. Chinese enterprises are more accustomed to purchasing foreign cotton from the large international companies. Two, the direct purchase of both sides is expanding, which is based on the credibility of both sides.

In the current trade, the international cotton merchants, including Louis Da FOK, Oran Cotton Corp, Will, Lai Bao, Lai Yinha special, have their own acquisitions and marketing in India, and import contracts with these large companies from the actual trade. The risk is much smaller than the direct contract with India cotton merchants.

Although the textile production in India is still in a state of dispersion, the textile industry in India has also undergone great changes, despite the cancellation of the quota system in the field of cotton processing in India.

On the one hand, the backward equipment is rapidly modernizing. On the other hand, the advanced and capital intensive new textile industry is expanding rapidly, enhancing the competitiveness of India's textile industry in the international market.

The development of India's textile industry will be further promoted by abundant raw material resources, long-term accumulated technical strength, competitive skilled workers and marketing professionals.