India 2008/09 cotton price does not have international competitiveness

According to foreign reports, as of October 17, India 2008/09 cotton planting area of 1.365 million mu, in which genetically modified cotton area of 80% of new cotton production is expected to exceed last year’s 5,320,000 tons, the yield will reach 39.4 kg / mu Than 3% growth in the previous year.

By the early effects of rain, the cotton harvest this year, India postponed. At present, the new cotton market on volume of 1.36-1.70 million tons, the impact on China’s cotton exports. Cotton Corporation of India (CCI) has begun to acquire Punjab Haya and the state seed cotton, cotton is expected to purchase the new 2008/09 amounted to 85-170 million tons.

In the past few weeks, the Indian rupee against the U.S. dollar exchange rate remained low, so that the domestic cotton price down, but the Government of India so that the minimum support price of cotton does not have international competitiveness, traders and exporters who wait-and-see attitude. At the same time, the global market decline in consumption of cotton is very concerned about the purchase of textile care. ICE Futures prices have fallen substantially during the summer so that the signing of a contract to buy the textile industry is facing great difficulties.

October 16, CAB forecast 2008/09 beginning stocks for India 731,000 tons, the output of 5,474,000 tons, while imports amounted to 85,000 tons, the consumption of 4,097,000 tons, and exports to 1,275,000 tons, to 91.8 at the end of Stock 10,000 tons.