Compiled by this website: India’s cotton exports will increase
India’s Cotton Shipments to Rebound as ‘Worst Over’
By Thomas Kutty Abraham
March 18 (Bloomberg) — Cotton sales from India, the world’s second-biggest grower and exporter, may rebound starting June as demand for textiles revives and a weak currency makes shipments attractive, the nation’s biggest buyer of the fiber said.
Exports may total 5 million bales by September, said Subhash Grover, managing director of the Cotton Corp. of India. Shipments slumped to 800,000 bales of 170 kilogram each in September-March period from 6 million bales a year earlier, he said.
“The worst is over for the textiles sector,” Grover said in a telephone interview in Mumbai today. “ Private textile mills are buying as demand for cotton yarn and garments seem to be picking up in India and globally.”
Increased supplies from the South Asian nation may weigh on cotton prices that have fallen 43 percent in the past year in New York Amid concern the global slowdown will slash demand for the commodity. Global demand will total 111.1 million bales in the year ending July, down 9.5 percent from last season, the U.S. Department of Agriculture said on March 11.
Cotton futures for May delivery rose as much as 0.5 percent to 43.07 cents a pound on in after-hours electronic trading on ICE Futures U.S. in New York. Cotton has climbed 3.2 percent so far this month.
“Global production is less than last year and consumption seems to have picked up in the past 20 days or so,” Grover said. “Prices may rise to such a level in the lean season that Indian exports will become feasible.”
Global output will fall to 108.65 million bales from 109.51 million bales projected in February because of smaller crops in China and Pakistan, according to the USDA. Production in the previous season was estimated to be 120.55 million bales.
Weak Rupee
A drop in India’s rupee may boost export prospects in the coming months, Grover said. The currency reached a record low on March 3 and has a fifth of its value in the past year as concern about a deepening global recession prompted investors to pull out funds from emerging markets in favor of safer bets.
“Rupee is weakening day by day and if international cotton prices go up by 2 to 3 cents in the next two months, then larger exports will take place,” Grover said.
India’s cotton production may be slightly’ more than the 29 million bales estimated by the nation’s Cotton Advisory Board last month, Grover said. Farmers have sold 25.5 million bales of cotton since the cotton season that began on Oct. 1, he said.
Cotton Corp. may purchase 9.5 million bales by September from farmers at the government-guaranteed prices and plans to sell to mills and exporters, Grover said. It has sold 4.7 million bales already.
Indian cotton exports will increase
Author: Thomas Abraham Kutty
March 18 (Bloomberg) – India is the second largest producer and exporter of cotton in the world . India’s largest cotton buyer said India’s cotton sales may rebound in June as the textile industry recovers and weak currency markets will spur an increase in cotton shipments.
Suba Grover, executive director of Cotton Corporation of India, said total cotton exports in September this year will touch 5 million bales. Cotton exports from September last year to March this year fell to 800,000 bales (170 kg each), compared with 6 million bales a year ago.
“The bad times are over for the textile industry,” Grover said in a telephone interview from Mumbai today. “As demand for cotton yarn and clothing increases, private textile mills have increased purchasing power in India and beyond.”
The U.S. Department of Agriculture announced on March 11 that increased cotton supply in South Africa may drag down cotton prices. In the New York market, cotton prices have fallen 43% in the past year due to concerns that the economic slowdown will lead to reduced demand for daily necessities. By July last year, the total demand for cotton for the year reached 111.1 million bales, a decrease of 9.5% from the previous year.
On the ICE New York Futures Exchange cotton futures market, the cotton May 2009 contract closed at 43.07 cents per pound, up 0.5 percentage points. Cotton futures have risen 3.2 percent this month.
“Output has dropped significantly compared to last year, while IndiaSales volume in the past 20 days has shown a clear improvement trend,” Grover said. “Cotton prices may rise to previous off-season levels, and India’s exports will increase. ”
According to the U.S. Department of Agriculture, production in February is expected to reach 109.51 million bales, which may actually fall to 108.65 million bales due to reduced crop production in China and Pakistan. The estimated production of cotton in the previous year was 120.55 million bales.
Rs. Devaluation
Grover said that the depreciation of the Indian rupee will promote an increase in exports in the coming months. On March 3, the rupee reached a record low value. In the past year, the rupee has depreciated by 20% .As the economic recession intensifies, investors are withdrawing funds from emerging markets and investing in industries with high profitability.
Grover said: “The rupee is depreciating every day. If international cotton prices fall in the next two months, With an increase of 2 to 3 cents, India will replace China and become the largest cotton exporter. ”
The National Cotton Advisory Council estimated last month that India’s cotton production may slightly exceed 290,000 bales, Grover said. The peak selling season of cotton starts on October 1, and so far, farmers have sold 2,500 bales. 10,000 bales of cotton.
The Cotton Corporation of India will start purchasing cotton from farmers in September. It is estimated to purchase 9.5 million bales at the price purchased by the government. Grover said that it has sold 4.7 million bales of cotton so far.
Disclaimer:
Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights, please contact us and we will change or delete it as soon as possible.
AA
