From the end of September to the beginning of October, Indian cotton yarn prices continued to fall due to the impact of declining exports (especially to China), while cotton prices were supported by increased imports from Pakistan.
Currently, Indian cotton yarn prices continue to be under pressure from weak demand. China’s tax exemption for Pakistan has caused constant complaints from Indian yarn mills. In fact, the fundamental reason for the decrease in Indian cotton yarn exports to China is that the United States has imposed additional tariffs on Chinese clothing, which has led to a decrease in China’s cotton yarn import demand. The rebound in the Indian rupee exchange rate has also led to higher dollar quotations for yarn, with cotton yarn exports falling sharply in recent months.
At the same time, Indian cotton prices remain stable. As Pakistan’s cotton production is much lower than expected, Pakistan’s demand for Indian cotton imports may increase significantly. At the same time, Indian Cotton Company may start large-scale MSP acquisitions after the start of the new year on October 1.
