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    India Will Launch Cotton War With China?

    2011/7/19 11:39:00 37

    Cotton And Cotton Export To Domestic Cotton

    The rapid development of India's textile industry has led to the continuous expansion of cotton demand.

    In recent 4 years, the annual cotton demand in India has increased by 8.5%~9%.

    In the next 3~4 years, India may be pformed from an exporter of cotton to an importing country and compete with China on cotton resources in the international market.


    According to foreign media recently reported that the world's second largest

    Cotton export

    India's cotton production is likely to change to cotton importers within 3 to 4 years due to continued domestic cotton production, which will force the country to compete with the world's largest cotton importer in China for cotton resources.

    Experts say that if India becomes a cotton importer, it may further increase cotton prices and increase pressure on Chinese cotton spinning enterprises.


    Or promote the international cotton price.


    In India, cotton needs to be picked by hand and not grown densely. The output of India cotton is reduced to 475 kg / ha, which is 38% lower than the global average.

    By contrast, the picking of other major cotton producing countries such as the United States and Australia has been mechanized.

    In addition to farmland constraints and weather and price fluctuations, the government of India has asked cotton farmers to grow grain in order to curb high grain prices, which is also an important reason for cotton production reduction.


    Similar to India, China's cotton planting area is also decreasing due to policy support for planting grain crops.

    In 2010, cotton became the most eye-catching commodity in commodities, attracting a large number of speculators, and its price peaked in the three quarter of last year.


    China Textile Import and Export Chamber of Commerce

    Clothing department

    In an interview with our reporter, director Hu Min said that speculation in commodities has driven cotton prices up.

    India has always been a big exporter of cotton. If exports are converted to imports, it will inevitably lead to high international cotton prices, and foreign cotton production will surely be affected.


    She further analyzed that the domestic cotton prices are unstable, and cotton growers are not very accurate in judging and forecasting the whole market.

    Now the cost of raw materials is high and the price is not expected to be clear, which has increased many uncertainties for the production of domestic textile enterprises.

    Under the interaction of many factors, the price fluctuation is more uncertain, the profit of textile enterprises is reduced, and some foreign orders have been pferred.


    According to the reporter, China's cotton imports rely heavily on the United States.

    The United States is the largest cotton producing country in the world, while India and China consume 60% of the world's cotton output.

    According to relevant data from the government of India, China is the largest textile exporter in the world, accounting for 28.3% of the world market last year, while India accounts for only 4.3% of the market.

    "In the past, the main source of cotton imports in China was the United States, followed by India.

    In 2010, China's imports of cotton from India decreased and the sources of imports gradually diversified.

    By the end of 2010, China's cotton imports from Uzbekistan accounted for more than 30% of the total import share of the month.

    In addition, the share of cotton imported from Australia, Brazil and other countries is also expanding.

    Liu Cheng, an industry analyst at China Business Productivity Promotion Center.

    He believes that if India becomes a cotton importing country, it will become a new driving force for the rise of cotton prices, which will lead to the rise of international cotton prices over a period of time.

    But in the longer term, the price of the whole international cotton market will also be affected by many factors, such as weather, supply and demand, and not only by expanding demand in India.


    Industrial competition leads to competition

    raw material

    compete


    Liu Cheng further pointed out that the growing demand for cotton in India is the main reason for India's pformation from a cotton exporting country to an importing country in the future.

    In recent 4 years, the annual cotton demand in India has increased by 8.5%~9%. The rapid development of the textile industry has led to the continuous expansion of cotton demand.

    "The future cotton demand competition is mainly embodied in the international competition between the two countries in the textile industry."

    Liu Cheng said that the textile industry in India will also develop rapidly, and the demand for cotton will gradually expand. Its domestic cotton supply can not meet the demand, and will compete with cotton resources in China.

    However, the overall competitiveness of China's textile industry is still superior to that of India. In the short term, India is still difficult to influence the status of China's textiles in the international market. However, the competitiveness of India's textile industry is gradually strengthening and has great potential for development.

    In order to achieve the goal of textile power, China must actively promote the pformation of the textile industry development mode and make the textile industry move towards innovation, resource conservation, sustainable development and internationalization.

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