The Committee on Cotton Production and Consumption expects the current year’s production to be 36 million bales, lower than last year’s estimate of 365 lakh bales. This dip is owing to the spread and impact of COVID-19.
Browsing: cotton market
Demand, trade war and global economic scenario are all playing its part in the weak cotton market.
Trade war and India’s lowered cotton output are enablers for new market opportunities for United States’ cotton in India.
Excess supply and prolonging trade war with China is affecting the cotton market. Productive, albeit stressful conversations, occurred at the Lubbock-based Plains Cotton Grower (PCG), Inc, about the current trade situation with China, which is impacting the production agriculture in the United States.
Cotton community in the US has realised that cotton industry needs collective effort by all stakeholders to advance. End-user communities, research organisations, financial institutions, policy makers need to work with cotton, agriculture and for that matter any industrial sector to advance.
The Mumbai-based Cotton Association of India (CAI) is against Cotton Corporation of India stockpiling 7 to 8 million bales (170 kg each) by procuring during peak arrival season to sell to user mills during May to September time-frame. According to CAI, this scenario will need huge investment by the public sector Cotton Corporation of India and also it will incur losses due to price fluctuations. CAI in citing the China reserve policy, India should learn from China and should not venture into the reserve situation for cotton surplus country like India.
Organics share of the identity cotton market is declining in India due to pricing issues, the lack of availability of non-GMO seeds, and the “multiple costs of certification which are having a knock-on effect on end-consumer products