India Slashes Cotton Production Forecast
January 26, 2012 India, the world’s second largest cotton grower, will grow a smaller crop than expected as diseases have hurt yields in Maharashta and Andhra Pradesh, according to a Bloomberg report this week quoting the country’s textiles commissioner.
The report said the harvest could reach 34.5 million bales of 170 kg (375 lbs.) each in the year that began Oct. 1. That is down from last year’s 35.6 million bales.
Production may be only marginally better than last year, D.K. Nair, secretary-general of the Confederation of Indian Textiles Industry, told Bloomberg, adding that local prices will rise as ending stocks may come down because of higher exports.”
Another report, from India’s Business Standard newspaper, said high export demand from China is supporting prices. Export demand “has picked up from major textile hubs like China, Bangladesh, Taiwan and Indonesia,” it said. China’s December cotton imports rose 71% year-on-year to 790,000 tonnes and the country will soon issue another import quota of 1.1 million tonnes, it said.
Demand from cotton yarn manufacturers also increased in the last couple of weeks, according to the newspaper. So far, 4.6 million bales had been exported and by March-end 5.5-6 million bales are expected to be exported.
Source: Bloomberg, Business Standard and published reports, Edited by FCI Staff
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