India's new cotton supply, exports look

According to the latest forecast of the Indian Cotton Association (CAI), we can analyze the production of Indian cotton in 2012/13 at about 5.95 million tons. CAI stated that although the area of ​​cotton planted in India has been reduced by 3% this year, the recovery of normal monsoon rains has ensured the yield of new cotton. In addition, India's domestic cotton consumption is less than 5 million tons, so the surplus cotton still has 2.55 million tons.

The price of cotton yarn in India has soared by 14% in the past two weeks due to the increase in seasonal demand at home and abroad. The price of 30 yarns rose from 175 rupees/kilogram to 200 rupees/kilogram. According to traders, the recent purchases of traditional cotton yarn buyers in India have led to a very active demand in China. As the demand for cotton garments peaks in summer, garment manufacturers need to replenish stocks at least four months in advance. Indian mills expect Indian cotton yarn prices to continue to rise in the coming months, and exports to China continue to increase.