India: Supply Surge Next Year, Export Competition Intensified

According to the US agricultural Counsellor's forecast, India's cotton consumption in 2020/21 was 23 million packs, an increase of 2% over the same period last year, because textile mills gradually resumed production after the outbreak.

In April, the production of India textile mill basically stopped, and a small amount of production began at the end of April, but the main production of protective products was only 20-30%. The industry expects cotton production to be around 1 million 560 thousand bales in 3-4 months. At the same time, most factories have 15-60 days' inventory and raw materials inventory is 1-3 months. Once the production is resumed, the biggest difficulty of the factory is finding yarn customers.

In 2020/21, the export volume of India's cotton is expected to be 3 million 500 thousand packages. This year, India cotton is expected to have a bumper harvest again, the export supply will increase substantially, but the buyer is very limited. The current epidemic situation has caused India cotton to lose a large number of orders. Therefore, the competition between India cotton and American cotton and Brazil cotton will intensify in the new year. Cotton imports are expected to fall by 55% to 1 million bales.

According to statistics from the Ministry of Commerce of India, exports of cotton yarn, cotton cloth, textile products and handicrafts in India decreased in March this year. 32.16% Exports of garments declined. 34.91% The epidemic has brought great impact to India's foreign trade, and many orders have been postponed or cancelled.

In 2020/21, the final inventory of cotton in India is expected to reach a record high of 15 million 310 thousand bags. At present, CCI has about 700 thousand packages of 2018/19 annual inventory, and the total Treasury has 8 million 190 thousand packages.