Weak Demand For Cotton Exports In India, Prices Rose Slightly

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< p > because of the takeover of state-owned enterprises, the world's second largest producer, a href= "//www.sjfzxm.com/news/index_p.asp" > India < /a >, cotton prices rose slightly this week and export demand was weak, but state owned takeovers could reduce the pressure of cotton supply in spot market.

Arunbhai Dalal, a dealer in Ahmedabad, Gujarat, said that in some states, the government has already begun to buy, and other states will also begin to buy.

Government takeover could boost cotton prices this week.

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< p > in the sales year which began in October 1, 2012, the state-owned India < a href= "//www.sjfzxm.com/news/index_c.asp" > cotton < /a > Company (CCI) has purchased about 1 million 300 thousand packages (170 kilograms), and most cotton merchants expect that the India Cotton Corp will buy another 7 million packets.

This can curb cotton supply in the spot market in the next few weeks.

Although the supply of cotton in spot market is increasing this year, it still decreases by 12% to 8 million 800 thousand packages, because many farmers are reluctant to sell goods and wait for government intervention.

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"P" yarn enterprises may support domestic prices, and they expect exports to grow by 20%.

However, as China's demand from the world's largest textile producer and India's largest cotton buyer is reduced, the export of raw cotton will weaken, which may undermine India's domestic cotton prices.

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< p > because of the slowdown in European and American economies, < a href= "//www.sjfzxm.com/news/index_f.asp" > textile > /a > consumer demand has weakened, China has reduced fiber imports, while China's output has increased.

The India Cotton Association reported that on Monday, the largest volume of Carle's 6 cotton rose 200 rupees to 33400 rupees (600 dollars) / candy (356 kilograms), about 77 cents / pound.

On Tuesday, the multi commodity exchange (MCX) January cotton futures contract closed at 16410 rupees.

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