Rising prices may postpone India's cotton exports

Indian industry officials said that due to the gradual reduction in cotton stocks, the arrival of new cotton is very poor, so India may postpone the export of cotton for two weeks, to mid-October, which may stimulate the global cotton prices soared.

India is the second largest cotton producer in the world, and India plans to export 5.5 million bales in 2010-11 (starting on October 1).

Earlier this month, India postponed the registration of cotton exports originally started on September 15 to October 1 because the textile industry was concerned about rising domestic prices. The Ministry of Agriculture and Textile officials will meet on Tuesday to determine the number of exports in 2010-11.

If the meeting allows exports, then domestic textile mills and exporters will compete for limited sources of cotton and prices will be pushed up again.

In India, the price of the most commonly used Shangkar-6 on Saturday was 37,700 rupees (837.8 US dollars)/candy (356 kilograms), a year-on-year increase of 68%. Earlier this month, the price hit a record high of 38,500 rupees.

Last week, the New York cotton futures rose to a 15-year high, due to speculation and the purchase of textile mills. Analysts said that the main reason for the price increase is speculation funds, and they expect the cotton price will continue to rise if China and Pakistan The weather is bad.

This year, about 60% of Indian cotton is exported to China, which is the world's largest cotton consumer country. The Indian Cotton Advisory Committee expects India to stock 4.51 million bales at the beginning of 2010-11, a decrease of 43% from the previous year.