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    India And China Are Bound To Break Out Of Cotton Wars.

    2011/8/3 9:52:00 40

    India is the second largest exporter of cotton in the world.

    At the same time, as cotton production continues to decline, India may become a cotton importing country in 3-4 years.

    Therefore, the India textile mill will inevitably be forced to compete with the world's largest cotton importer, China, for cotton supply.

    Although India has increased its cotton planting area, India cotton yield has decreased to about 475 kg / ha, which is 38% lower than the global average yield per unit area.

    Because India is picking cotton by hand, this is different from the main cotton producing countries, such as the United States and Australia, they are machine picked cotton.

    Therefore, Sunil Khandelwal, chief financial officer of India Alok industry, said: "in the next 3-4 years, the surplus cotton situation in India will disappear. The textile factories either import high priced cotton or choose artificial fibers.

    "He said that in terms of quantity, India is the largest textile manufacturing country in the world."

    At the end of September 2012, cotton production in India will reach a record 6 million tons, or 35 million packets, 170 kilos per pack, and thereafter the output will begin to decline.

    According to the data released by the India government, China is the largest textile exporter in the world, occupying 28.3% of the global market share last year, which is 6.6 times the 4.3% share of India.

    The India company is capturing the European and American textiles and clothing market with China and other Asian countries, such as Pakistan, Bangladesh and Vietnam.

    If India becomes a net importer of cotton, India will compete with Chinese enterprises for the supply of cotton.

    Khandelwal said: "we compete with Chinese enterprises for other resources, and in the near future, we may compete with them for cotton."

    Chinese experts agree with him that they say the high-end textile industry in China will further stimulate demand for cotton.

    In 2010 and 2011, China's cotton consumption was about 10 million tons, compared with the annual output of 6 million 600 thousand tons.

    By 2015, China's cotton demand is expected to reach 13 million tons.

    A senior Chinese official said in June that China's output was difficult to raise, and its output decreased by 6.9% to 5 million 960 thousand tons last year.

    The Chinese government has not formally established the target of cotton production in 2015.

    In the 2019-20 year, the consumption of domestic textile industry in India is expected to reach 7 million 20 thousand tons, and domestic residents' abandonment of polyester and clothing exports will increase greatly, which will greatly benefit cotton demand.

    The competition between the two Asian giants will inevitably stimulate price volatility in the global market.

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