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India Textile Mill Slows Down Cotton Purchase Speed

2011/10/19 15:47:00 31

India's textile industry expects cotton production to reach a new high this year, but economic uncertainty may drag on cotton procurement progress.

Although India is 2011-12 years old

cotton

The output may exceed 36 million bales (170 kg / pack), but the industry seems to worry that the cotton consumption of domestic textile mills may decline due to the uncertainty of the global economy.

A survey of business standards shows that most cotton stakeholders across the country feel that cotton production in 2011-12 is 3500-3650 pack, an increase of 12-15% over last year's 31 million 200 thousand package.

An industry source said that India's cotton production this year is expected to exceed 36 million packages, because the main cotton producing areas have good monsoon rainfall.

In addition, cotton export is managed by open general license. Therefore, the export of cotton is expected to be between 700-1000 bales this year.

This means that domestic consumption has a large surplus.

According to insiders, nearly 12 million packages are expected to be sold in the domestic market in about 36 million packages of total output.

This may put downward pressure on prices.

Due to domestic

market

There are about 12 million packages, so the industry is worried that prices will face downward pressure.

At the right time, the price may fall to about 35000 rupees / candy (356 kg) or even lower.

The southern India Textile Mills Association estimates that so far, due to cotton and

yarn

Price fluctuations, India textile industry has lost 150 billion rupees in the current fiscal year.

From a global perspective, cotton production is expected to increase by 8-10% this year, while the growth of consumption in major consumption countries is lower than that in output growth.

Insiders say that this is not a buyer's market.

When new cotton arrives in the market in November, the days will be even more sad.

Prices will fluctuate.

The purchase of domestic textile mills is bad, and many textile mills are closed, so the cotton purchase situation is not good.

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Cotton yield has declined for four consecutive years.

The cotton yield per unit area in India decreased from 554 kg / HA in 2007-08 to 475 kg / HA in 2010-11 years.

India's cotton planting area in the past 2010-11 years is 11 million 160 thousand hectares, with a new high.

India government agencies also expect cotton production to increase.

The Ministry of agriculture expects output of 36 million 100 thousand bales, while the Cotton Advisory Committee expects to produce 35 million 500 thousand packages.

India Cotton Corp expects output of 36 million 300 thousand bales.