Regional Economy: India Will Impose Restrictions On Cotton Exports

 

      According to the economic times of India Recently, Piyush Goyal, India's textile minister, said at a textile industry meeting recently that the cotton pricing problem should be solved with a spirit of cooperation. Traders should not hoard goods to speculate on cotton prices and make profits, and they should not put pressure on relevant departments to ask for government intervention. He stressed that cotton prices should give full play to the market regulation mechanism, with the help of the mutual support of stakeholders in the industrial chain, in order to achieve long-term sustainable growth. At present, there is no official channel to release the information about the ban on Indian cotton export.  

      According to USDA's latest global cotton supply and demand forecast data in November, India's cotton production in the new year is about 6.1 million tons, which is basically the same as that in 2020 / 21; In the post epidemic period, India's domestic cotton textile industry gradually recovered, with an optimistic consumption expectation, with an expected consumption of 5.62 million tons in the new year. From the current basic situation of India's domestic cotton market, India's supply and demand will be basically balanced in 2021 / 22.

      In the last year, China signed more contracts with India cotton, mainly from CCI inventory, while at present, CCI reserves only a few thousand tons of cotton. Since November, the spot price of cotton in India has been high, and the S-6 price has always been running at a high level above 65000 rupees / Kandi. At present, the purchase market price of seed cotton is much higher than the MSP price of CCI in the new year, so it is difficult to start the collection and storage work of CCI, and there is less available export volume.

      At present, India's cotton reserves and prices do not have advantages, India's cotton lack of good export conditions.