Weak Export Demand, India Cotton Prices Will Rise And Fall

In recent months, under the influence of domestic cotton production reduction, India's domestic cotton prices have continued to strengthen, but the sharp fall in international cotton prices and the weakening of cotton yarn demand may drag India's domestic cotton prices in the coming period.

India Cotton Advisory Committee (CAB) predicts that cotton production in India will be 34 million 300 thousand bales (170 kg / pack) in 2018/19, down from 34 million 800 thousand packages in the previous year, a low point of nearly 12 years.

In recent years, extreme hot weather in cotton producing areas, late arrival of seasonal rains and water shortages and water supply in main cotton producing areas have aroused concern about the unit yield and stimulated the rise of cotton prices in India.

However, affected by the drop in international cotton prices, the price of imported cotton and domestic cotton in India is 3000-4000 to 46000, and the domestic price is about rupee / candle.

India Southern textile mill Association said that domestic textile enterprises are actively importing cotton to reduce costs. In recent months, large enterprises have imported about 200 thousand bales of cotton, far higher than in previous years. However, SMEs have no strength to import.

In addition, the weakening of India's clothing exports also inhibited domestic demand for cotton yarn. Experts believe that in the next few months, India's domestic cotton prices will rise and fall.