India opens up its exports to reduce the possibility of soaring international cotton prices The textile industry is dissatisfied

The international cotton market prices are relatively stable this week. The forecast report of the US Department of Agriculture (USDA) this month pointed out that the global cotton ending stocks in the new year will be greatly reduced, to the lowest level since 1994/95, and cotton supply is still tight. However, before the new cotton in the northern hemisphere was fully listed, it was difficult to draw a conclusion on the clear market situation.

The Indian Ministry of Commerce announced that the cotton will be released from the new year of India, ease the tension in the market, and reduce the possibility of skyrocketing prices next month. At present, it is unclear whether the Indian government will limit the export volume as requested by the textile industry. The market is paying close attention to this news. In September, a large amount of cotton is expected to be registered for export.

In the short term, Indian cotton has strong competitiveness in China, especially at the beginning of next year. Before the new cotton was harvested, the rhythm of US cotton sales was controlled and the import of Chinese companies did not start. The China Cotton Association recently lowered the production of new cotton by 100,000 tons, and cotton production in the Yangtze River Basin has decreased. The reserve cotton deposit is still going on, and companies that want to import cotton are also watching for changes in supply and demand. How to balance supply and demand in the new year also requires looking at the market outlook.

The reason for the recent market price stability cannot be separated from the flood disaster in Pakistan. Pakistan's cotton imports have increased significantly; how much output is lost in particular cannot be determined.

India has a lot of news that its domestic textile industry is frustrated with India’s cotton recovery from October 1.

The South Indian Textile Association pointed out that it would be too early to make such a decision to liberalize exports two months before the arrival of the new year (since October 1). The association also pointed out that the release of the announcement of the restoration of the freedom of export of cotton triggered the massive purchases of new flowers by Indian exporters, which will cause the shortage of domestic cotton supply at the beginning of next year.

The North Indian Cotton Association pointed out that the new export policy will promote cotton prices. In addition, the Indian Industry Organization (TEA) believes that liberalizing cotton exports will be detrimental to the domestic textile industry. They hope that the government can ban cotton exports by mid-January next year.