Cotton demand in India is expected to remain strong over the next 6 to 12 months owing to strong recovery in global apparel trade and retail demand. This could support a further reduction in global cotton stocks, industry experts believe. Cotton prices increased 43 percent in the first five months of 2021-22 compared to the same period last year.

The average cotton price during April-August increased from Rs 9,963 from a year earlier to Rs 14,225 per quintal, says Nidhi Marwaha, Vice President and Sector Head, Corporate Sector Ratings, ICRA. Prices are estimated to average 40-45 percent higher year-on-year in the first half of this fiscal, adds Marwaha. Along with strong local demand for cotton, strong export demand for yarn and cotton is also a key driver for bullish sentiments in cotton trade.

 

As against the normal consumption of 32 million bales year, the cotton consumption in the current year has increased to about 36-38 million bales, adds Pradip Jain, President, Khandesh Ginning and Pressing Association, an association of cotton traders from Maharashtra, the second-largest producer of cotton in the country.

 

There are apprehensions that delayed cotton sowing in several parts of the country this year because of the monsoon patterns could affect crop quality and yield, despite overall acreage reaching near normal levels towards the conclusion of the sowing season.

 

Source: fashionatingworld.com