India Cotton Association: Market Worries About New Cotton Reduction

India Cotton Association predicts that cotton production in India will reach 5 million 712 thousand tons in 2016/17, unchanged from the same period last year.

The association said that the cotton planting area in India decreased by 10% this year, but the output of cotton increased steadily because of the increase in output per unit area.

In 2016/17, the total supply of cotton in India was 6 million 766 thousand tons, domestic consumption was 5 million 253 thousand tons, and the surplus supply was 1 million 513 thousand tons.

China's import yarn is not subject to the quota control of the Chinese government, which makes India's exports of cotton yarn to China increase substantially, thus promoting the domestic demand for cotton in India.

Due to the increasing growth in India

Consumer demand has made India's cotton prices strong and continue to grow.

Cotton prices in India's domestic market are becoming international.

One of the factors, and the international market will also slowly refer to the cotton prices in India.

It is reported that India's new cotton is gradually on the market and the market demand is weak. But last week's heavy rain caused damage to about 7 million 500 thousand acres of cotton fields in southern India.

Affected by this, cotton prices in India have risen sharply.

The North India Cotton Association says

Basically no inventory, so prices will rise, and as the market supply gradually increases, the price will gradually weaken.

At present, the average daily turnover of new cotton in the northern part of India is 1700-2000 tons.

At present, the cotton producing areas in southern India are still raining. Traders are paying close attention to the weather in October.

It is expected that domestic cotton prices will remain strong for a long time, but will drop sharply after mid November.

India's Ministry of agriculture has set a minimum price of support for cotton (MSP).

At any time, the India government can buy cotton directly from farmers at MSP price.

The MSP price can ensure that farmers have a good harvest, which has also encouraged farmers to increase their planting area.