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India'S Cotton Market Buys More Than Expected

2008/12/3 0:00:00 10252

India

The lowest support price of cotton seed purchase announced by the government at the beginning of the year in India has led to the fact that most private flower mills are in a state of shutdown.

At present, only the India Cotton Corp represents a company's one-man show on the purchase of seed cotton without cost.

Although the industry initially estimated that Cotton Corp's acquisition capacity in India was 5 million bales (170 kg / pack), at present, it will obviously exceed that figure.

There will be general elections in February 2009, but there will be no political factors to change this situation.

It is said that the purchase volume of Cotton Corp in India has reached 1 million 500 thousand packages (170 kg / pack), accounting for 80% of the total cotton purchase currently.

There are no restrictions on the acquisition of most cotton in India by Cotton Corp in.

But it depends on the decision of the Minister of finance, because he will pay the final signature for these expanded acquisitions.

Now the rumors about the decrease in production are getting more and more intense.

We think it may be related to the fact that many small private ginning mills have not started to buy or buy less.

The domestic textile mills are also having a bad time.

Domestic cotton prices are high and funds are scarce. The economic crisis has led to an overall reduction in demand for textile products and a decrease in market share.

More and more people believe that India's domestic consumption this year is not the same as last year's.

It is not just cotton that is concerned about the recession.

Exports from all walks of life have been reduced in crowded ports, showing that ports are flooded with export products that are not needed.

Although the India rupee depreciated last week helped to reduce the FOB price of exports, the weaker dollar weakened its exchange rate against the India rupee to below 50.

Mumbai's stock market and foreign exchange market are still closed this week due to terrorist attacks in India.

Yang Jing: editor in charge

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