Recently, Domestic Cotton Prices Suddenly Rose In India, Making Textile Mills Feel Shocked.

According to foreign reports, the recent domestic situation in India

Unusually sudden rise and fall.

The factory was shocked.

Textile companies expect cotton prices to continue to rise in July.

In January this year, cotton prices in India have risen by 47%, the biggest increase in recent years.

Data show that in January this year, India's domestic high-grade spot price was 32500 rupees / candle, which rose to 33700 rupees in early March and soared to 47800 rupees in July 12th.

Despite circulation channels

Inventory can not be grasps, but India insiders believe that the actual inventory is about 765 thousand tons, two times the same level in the same period in previous years.

India textile mills believe that the current domestic cotton prices soaring is not sustainable. Judging from the price trend in the past ten years, cotton prices in the first week of August are expected to be callback.

A textile factory official said that at present, besides China, the global stock is very abundant, and there is no need for panic buying.

As for the impact of soaring cotton prices on business operations, the official said that the southern India textile mill could purchase imported cotton with a price lower than that of domestic cotton, but the problem is that it takes 3-4 weeks for cotton to arrive at the factory, while the small plant has no money to purchase in large quantities.

According to India's industry estimates, cotton imports in India this year have exceeded 340 thousand tons, far higher than the expected 187 thousand tons.

The South India Textile Mills Association, the textile industry hopes that the government will not intervene in the market at this time. The textile industry should have a fair competition environment, because the financing cost of India enterprises is high, and the fluctuation of cotton prices is too large.

The government can consider raising the standard of financing and margin level, because it will not cause capital outflow or consider the cotton reserve policy.

The association suggested that the India government should introduce a "price stabilization mechanism" or discount scheme at least during the month of November when -4 was launched in large quantities to enable textile mills to ride out price fluctuations.

The India industry said that the Cotton Corp of India should collect and store 110-120 tons of cotton and maintain it at this level and sell it to textile mills only.