India's cotton yarn prices stabilize after continuous decline

In the past week, India’s cotton yarn prices finally stabilized after falling for several consecutive weeks, and cotton prices fell again due to the surge in production.　　 During the week, India's cotton yarn prices generally rose by 1-2 rupees/kg. After the early cotton yarn prices fell sharply, downstream textile companies began to increase their purchases of cotton yarn. Up to now, cotton yarn prices are still down 14% year-on-year.　　 Affected by the significant year-on-year increase in new cotton production, Indian cotton prices continued to fall. The reason for the increase in cotton production this year is the substantial expansion of cotton varieties, the increase in yields, and the abundant monsoon rains. The Indian Cotton Association predicts that India's cotton production in 2019/20 will increase by 13% year-on-year, which is in line with the expected increase of the United States Department of Agriculture.　　According to analysis, the government's increase in the purchase price of MSP has prompted the expansion of India's cotton planting area. However, due to the decline in cotton prices this year, cotton farmers' income is likely to decrease, so next year the planting area and output may be significantly reduced.　　According to CAI's forecast, because the price of Indian cotton is higher than the overall level of international cotton prices, it is difficult for Indian cotton exports to increase this year. However, industry organizations are currently lobbying the government to resume trade with Pakistan. Pakistan's domestic import demand has increased significantly due to a sharp drop in cotton production, and textile companies are importing large amounts of cotton from Brazil. Article keywords: 　India cotton yarn yarn cotton prices overseas textiles