In the past week, Indian yarn prices continued to fall. This year, India’s cotton consumption is expected to decrease by 15%, while cotton production increases, so cotton and yarn prices may fall sharply.
The price of cotton yarn in India continued to fall that week, with 30-count knitting yarn falling by 8% in three months. In recent weeks, cotton and chemical fiber prices in India have continued to fall, and cotton mill profits have shrunk significantly.
Although business activities in India are slowly recovering, demand for clothing in Western countries is still very weak. However, many garment factories in India have begun producing masks, hoping to export them to the United States and Europe in large quantities as soon as possible. Currently, the Indian government is worried about the insufficient supply of domestic masks and has temporarily banned the export of masks. Once the decree is lifted, India will immediately begin exporting large quantities of masks.
Affected by the epidemic, cotton consumption in India is expected to decline sharply this year. According to the US Department of Agriculture’s forecast, India’s cotton consumption is expected to drop by nearly 15% this year.
At present, the price of domestic cotton in India is artificially raised by the acquisition of Indian Cotton Company, resulting in the decline of the competitiveness of Indian cotton yarn in the international market. As India’s cotton production increased by 18% this year, cotton farmers and CCI will start selling stocks, so Indian cotton prices are expected to fall sharply.
