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India'S Exports Of Cotton Yarn Have Been Damaged, And Domestic Demand May Begin To Pick Up In September.

2011/8/27 8:40:00 50

Industry

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Executives said that India's domestic demand for cotton could rebound from September due to holiday demand, but the global economic crisis is hurting India's exports of cotton yarn.

India

It is the world's largest supplier of cotton yarn. Its annual output is usually 20-25% for export.

According to the textile industry, India may produce about 3 billion 600 million kilograms of cotton yarn in the current fiscal year ending March 2012.

Domestic demand is likely to resume from September, as large orders will begin to emerge from the holiday season in October.

However, as long as global financial uncertainty still exists, some buyers will wait.

Price

Continue to fall, so exports can not be significantly restored, India textile industry alliance Secretary General Nair said.

However, he added that it is not too early to predict the export situation accurately this year.

Global demand for cotton yarn has declined since April, following a general decline in commodity prices.

trend

The recovery of the US and EU economies has been fragile since the 2008 financial crisis, and its vulnerability is greater than expected. Therefore, market anxiety has increased.

Since then, some

Bestselling cotton yarn varieties

Domestic prices also dropped by about 40%, following the international trend.

China, Korea, Hongkong and Bangladesh are the main markets for the export of cotton yarn in India.

So far this year, India has exported about 65 million kilograms, the same as last year, though domestic manufacturers have huge inventories.

In May, thousands of spinning mills went on strike and then cut production. They asked for export incentives to reduce their huge stocks and restore their competitiveness in the international market with competitors such as China and Pakistan.

After these cotton mills bought high priced cotton, domestic yarn prices plummeted, causing them to be caught off guard.

They sell yarn at home without profit and huge losses.

The government has restricted the export of 720 million kilograms of cotton yarn in 2010-11 years, but subsequently withdrew the export restrictions, because the government expects domestic production to increase with the increase in cotton production.

India expects cotton in the next market year (to September 2012) to have a bumper harvest for second consecutive years, because the planting area is enlarged and rainfall covers a wide area. In 2010-11 years, India produces 32 million 500 thousand bales of cotton.

clothing

Manufacturers have lobbied for the export of yarn in fiscal year 2011-12 to 600 million kilograms to ensure adequate supply.