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    India Cotton Corp To Increase Acquisitions Will Curb Exports

    2020/1/21 14:11:00 0

    CottonCompanyAcquisitionExport

    India Cotton Corp (CCI) said that because of the pressure on local prices due to overproduction, India State Cotton buyers will purchase about 5000000 packages (170 kg / pack) from farmers in, the highest level in five years.

    CCI said that because the spot market could not provide better prices for farmers, CCI must intervene. Since 2019/20, CCI has procured 3 million 800 thousand packages from farmers, and last year it purchased 1 million 80 thousand packages. The increase in CCI can keep India cotton prices near the level set by the government and restrict India's cotton exports, thereby supporting global prices.

    However, due to the recent rise in international cotton prices, private enterprises in India have been gradually increasing their purchases in the past few days, which may inhibit the acquisition of CCI.

    Due to the depreciation of rupee and the recovery of overseas market prices, Asian buyers such as China, Bangladesh and Vietnam have increased their purchases of India, and India's cotton export momentum has increased.

    It is understood that CCI has been buying cotton through auction, but has not received a good response from local textile mills. The price quoted by CCI is very high, and the textile factory prefers to buy it from a private cotton trader.

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