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    India'S Cotton Trading Price Will Be Higher Than The Government Support Price From The Beginning Of The New Year

    2021/7/29 11:53:00 0

    India'S Cotton Trading Price Will Be Higher Than The Government Support Price From The Beginning Of The New Year

    ? Foreign news on July 26, cotton traders expect cotton prices will rise in the new year.

    ?
    Pradeep Jain, founder of khandesh gin / press owners and traders Development Association, said that at the beginning of the new year, the average trading price of lint reached 6500-7000 rupees / kg.
    ?
    India is the world's second-largest cotton producer after the United States, but last year's drought in Texas reduced cotton production. As a result, cotton prices rose after December, and Indian farmers were able to ask higher than the minimum support price (MSP) announced by the government, i.e. 5515 rupees per catty.
    ?
    Indian exporters have managed to export 5.8 million bales (170 kg per pack) abroad due to the rise in international prices. According to industry estimates, cotton exports will reach about 6.5 million bales before the start of the 2021-22 (October September) cotton year.
    ?
    In the current rainy season, cotton prices have not increased in the region. As of July 23, India reported 10.893 million hectares of sown land. Last year, the country reported planting more than 11.803 million hectares in the same period. Farmers have been talking about increasing the yield of oil crops by increasing soybean acreage and reducing cotton and other crops.
    ?
    "India has 10 million bales of cotton at the beginning of 2019-20, and 3-4 million bales of cotton at the beginning of next year," Jain said. For now, international prices are good, and if this continues, we will see prices higher than MSP at the beginning of the new year. "
    ?
    Jain's optimism stems from the bullish trend in the cotook index, which has been trading above 90 cents a pound since February. In 2019-20, the index averaged 71.33 cents per pound. Indian cotton companies made record purchases due to low cotton prices.
    ?
    In anticipation of a rise in cotton prices, cotton society of India urged its members to take measures to expand the planting area. But the data show that most farmers in the country chose soybeans over cotton.   
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    Why Will Cotton Prices Rise?

    Originally, this month was another month to sell reserves and issue import sliding tax quota. In principle, this is all bad, why will the price rise? In fact, it's not a good idea

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