Strong demand stimulates Indian cotton prices

According to Reuters news on July 10, due to strong demand from domestic yarn mills in India, tight spot cotton supply, and insufficient rainfall in the main cotton producing area to affect new cotton planting, domestic cotton prices in India have risen.

A trader in Gujarat states that currently India’s cotton export demand is strong, and the domestic yarn mills in India have started to purchase raw materials in large quantities, which keeps Indian cotton prices rising. According to data from the Cotton Association of India, the price of S-6 in India rose to Rs 34,700/Kande (approximately 80 cents/lb) on Monday (July 9). Industry insiders expect this week’s increase to reach Rs 1,000 ( About 2.3 cents).

With the approach of the end of the year, India's domestic cotton stock has been significantly reduced. At the same time, Indian cotton is mostly planted in June-July, and data from India’s meteorological department shows that since the arrival of the monsoon rain in June, the rainfall in India has been 25% less than the normal level, including western and northern India. Rainfall is particularly scarce and it is very unfavorable for cotton sowing.