India may increase cotton exports or weaken cotton prices

An official from the Indian Cotton Growers and Cotton Traders Association stated that India is the second largest cotton producer and exporter in the world. As domestic cotton production surged by 27% and reached a record high, India may increase its export volume to foreign countries. . Nayan Mirani, deputy chairman of the Cotton Association of India, said recently. This year's output may reach 37.5 million bales, which is higher than the 34.5 million bales assessed by the association in September. The output was 29.5 million bales last year. He said that domestic textile mill demand may accumulate 26.6 million bales.

India’s expansion of exports may further weaken the increase in cotton prices. China’s and Pakistan’s cotton production has been cut due to bad weather this year, and cotton prices have soared. New York’s cotton boomed 26% and reached a new high of US$1.5195 on Nov. 10.

Mike Stevens, an independent trader in Mandeville, Louisiana, said that due to the expected high output, the Indian government may announce that it will increase its export quota. The government stated on September 4 that in order to meet domestic demand, the export volume this year was limited to 5.5 million bales.

The Ministry of Textiles ceased registering new export contracts on October 11 because the number of applications had reached the specified limit. The largest cotton traders, LVD Commodities, Cargill and other companies have obtained cotton export licenses.