cotton industry

INDIA REVISES TARIFF RATES FOR EXPORT/IMPORT

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* Government Of India In The Ministry Of Finance (Department Of Revenue) Has Revised Tariff Rates For Export And Import Rates Updates, With Effect From 6th January, 2017, According To Central Board Of Excise And Customs (CBEC).
* The Revised Customs Exchange Rates For Good To Import In USD/INR Will Be 68.80, Whereas Exports At 67.15.
* The Revised Customs Exchange Rates For Good To Import In Chinese Yuan CNY/INR Will Be 9.95, Whereas Exports At 9.65.
* Note: Rate Of Exchange Of One Unit Of Foreign Currency Equivalent To Indian Rupees.

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COTTONGURU ™ DCH report:

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COTTONGURU ™ DCH report:
Market increased substantially following lower arrivals, high prices of kapas and strong demand from buyers.Ready cotton market Karnataka DCH sold @Spot 54500 to 55500 and Ratlam DCH @Spot Rs 55000. Quality cotton is available with limited ginners only.
Manish Daga
http://www.cottonguru.org

ICAC JANUARY FORECASTS:

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*इंटरनेशनल कॉट एडवायजरी कमेटी यानि ICAC ने अपनी मासिक रिपोर्ट में 2016-17 के लिए कपास के भाव को लेकर नया अनुमान जारी किया है जिसके मुताबिक 2016-17 की दूसरी छमाही की शुरुआत यानि मार्च के बाद अंतरराष्ट्रीय स्तर पर कपास के भाव में गिरावट आ सकती है।
*ICAC के मुताबिक 2016-17 के दौरान अंतरराष्ट्रीय स्तर पर कपास का बाव 66 सेंट से लेकर 83 सेंट प्रति पाउंड के बीच रह सकता है और औसत भाव 74 सेंट प्रति पाउंड रहने का अनुमान है।
*भारत में इस साल उत्पादन 4 फीसदी बढ़कर 60 लाख टन से थोड़ा कम होने का अनुमान है।

गुड्स एंड सर्विस टैक्स (जीएसटी)

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DATE: 03 JANUARY ,2017

गुड्स एंड सर्विस टैक्स (जीएसटी) काउंसिल की आज अहम बैठक होगी, जिसमें आईटी-बैंकिंग सहित 06 महत्वपूर्ण सेक्टर्स के अधिकारी शामिल होंगे। बैठक में जीएसटी को लागू करने में आ रही कुछ बाधाओं पर चर्चा की जाएंगी |

{GST counsil meet official of crucial sectors today, including IT, Telecom, Banking and Insurance.}

Source: Market Mirror

CottonGuru’s Fortnightly Cotton Market Newsletter 09th June 2015

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COTTONGURU™ - P.R.D. Cottons Group Of Companies

INDIA Arrivals: (as on date: 02-06-2015)

Weather and Sowing: The southwest monsoon season rains (June to September), which account for over 70 % of India’s annual rainfall, are projected to be below normal for a second straight year. The Indian Meteorological Department (IMD) believes the current weak El Nino conditions are likely to continue during the monsoon season, thereby leading to a below-average rainfall in the country. However, less rainfall is not really bad news for cotton. A below-average monsoon may not hurt its production, as cotton is more resilient than most rain-dependent agriculture crops. In fact, experts point out that a poor monsoon normally tends to benefit cotton, as it is a desert crop like it happened in 2014-15.

Cotton sowing might dip by up to 15 % in the coming sowing season, as farmers were not satisfied with the price they got last year, says a study by the department of agricultural economics of Junagadh Agricultural University. The study suggests the area under cotton across the country increased to 12.65 million hectares in 2014-15 from 11.69 mn ha in 2013-14. The crop is estimated to be sown on 10.7 mn ha in 2015-16. However, the farmers groups feel that the cotton area may not shrink during the 2015-16 season, as sowing has begun in many of the cotton producing states. The good news for India is that cotton prices have started bouncing back recently and, therefore, there are hopes that the reduction in planting area may not exceed 10 %.

Domestic Market Summary:

Steady demand from domestic mills helped prices trade higher against limited availability in the market yards. Most of the Ginners and even the Government Agencies are holding onto their stocks at the moment as moisture content in cotton bales has reduced substantially, resulting in weight loss of the bales due to rising temperature throughout the country. They are expected to release their stocks sometime in June or July, when monsoon arrives as bales would regain moisture then. The domestic textile industry is primarily cotton based, with cotton accounting for nearly 54 % of the total fibre consumption in 2014. However, the industry is facing challenges like price fluctuation and inconsistent quality of indigenous cotton. The demand can be met only through production of high-quality cotton within the country. Further, the domestic textile and apparel market is now worth more than $100 billion and is still growing at a healthy rate. It has a potential to double the share of exports from the present 5 % to 10 % in the next 10 years. So the need of the hour is to produce good quality cotton at globally competitive price. China, the world’s biggest purchaser, has been cutting down its cotton import considerably. As a result, Indian cotton export is expected to fall to a 6-year low. The Cotton Advisory Board (CAB) estimates that cotton export will drop to 7 million bales by September 30 from 11.79 million bales in the same corresponding period last year, a drop of over 40 %. Cotton shipments from India have been recorded at around 5 million bales this season.

Cotton Corporation of India (CCI)

According to textile minister Santosh Kumar Gangwar, the government will likely incur record losses of around INR 2.5 billion on its cotton procurement operations, in the current marketing year.

The CCI has procured 8.7 million bales of cotton so far in 2014-15, just a little lower than the record procurement of 8.9 million bales in 2008-09. Moreover, cotton prices had remained subdued for a long time this year, thanks to plentiful supplies and poor demand for both the fibre and yarn from China.

Out of the procured stocks, the CCI has sold almost 1.5 million bales of cotton so far.

CCI is selling 70,000-75,000 bales (170 kg each) of cotton on a daily basis. CCI started offloading substantial stocks since April after the industry had complained to the textile ministry of an artificial shortage in the market created by the CCI. Refuting the allegations, CCI chairman B.K. Mishra earlier said the country was expecting a bumper harvest of 39 million bales in 2014-15, way above the requirements by textile mills, especially when export demand remained tepid.

Yarn

Poor demand in cotton yarn from domestic and overseas buyers has resulted in inventory built up leading to financial crunch in the industry, said a spinning mill owner from South India. Government’s decision to direct state authorities to close down textile units in various states on the grounds of releasing hazardous waste to nearby water sources is impacting the industry. Demand in yarn has slowed down. Grey markets have large inventory as printing process has slowed down, which would halt arrivals of finished product in market yards, eventually leading to tight liquidity on the whole.

International Market:

Cotton continued its steady rise in the international market. Reduced sowing reports have led to a change in sentiment. Under the new Chinese policy, its cotton stocks will not continue to build. When and how China chooses to dispose of its huge stockpiles will probably have lot of implications for world cotton markets.

China: As per fresh rumors in the markets, Chinese government has plans to auction around 1 million MTs reserve cotton during June, July and August this year. It plans to sell 300,000 MTs of 2011 crop domestic cotton at 13,200/Mt. 400,000 Mts of 2012 crop domestic cotton at 14,200/Mt. 300,000 Mts of old crop import cotton at 15,000/Mt. These prices are based on standard 328 quality, price of each lot will depend on premium/discount based on the re-classing result.

U.S.: The USDA says China had more than 60 million 480-pound bales of cotton in storage before it harvested or imported the first bale of cotton last year. That’s almost twice as much cotton as Chinese mills use each year and almost four times as much cotton as the United States produced in 2014. If China chooses to sell even a modest share of those stocks to its mills each year, it will reduce the demand for cotton imports from the United States and other countries. Concern about this possibility is putting downward pressure on cotton prices. This obviously has implications for U.S. cotton producers, but it also could be important to taxpayers. Although the new farm bill makes many changes in U.S. cotton policy, it retains a program that makes payments when prices fall below a trigger level; that level was breached in late 2014.

Turkey: In 2015, the Turkish planting area is expected to be about 3,80,000 hectares and production about 2.75 million bales, a reduction of 12% compared to last year.

Egypt: Cotton planting area is expected to be 93,000 hectares and production about 3,15,000 bales, a drop of 40% compared to the year before. The Government has stopped cash subsidies to farmers and spinners .The new policy requires farmers to have contracts with spinning and weaving companies based on Govt. fixed prices.

Important Reports:

USDA: ICE cotton futures rose to their highest level in nearly two weeks last week after a US Department of Agriculture (USDA) report showed strong export sales last week, but prices pared gains later in the session. Cotton contracts for July traded within a range of 64.27 and 66.59 cents a pound, the highest level since May 18. Some of the Investors are turning bullish and target December cotton futures to rise to 80-85 cents a lb over the course of the next several months

ICAC: In 2011/12, Chinese imports more than doubled from the previous season to 5.3 million tons and surpassed the total volume of imports by the rest of world, which reached only 4.4 million tons. However, in the following seasons, Chinese imports declined while imports outside of China have steadily grown. In 2014/15, imports outside of China are likely to increase 6% to 5.9 million tons, but will not offset the 45%decline in Chinese imports to 1.6 million tons. As a results world imports are projected down 12% to 7.5million tons in 2014/15. However, in 2015/16 world cotton imports may recover modestly, increasing 2% to7.7 million tons with imports outside of China rising by 3% to 6.1 million tons. Bangladesh, Vietnam and Indonesia are expected to be the three largest importers outside of China in 2015/16 due to the continued growth in their spinning sectors that rely primarily on imported cotton. Bangladesh’s imports are forecast at just less than 1 million tons in 2014/15 and are expected to remain stable in 2015/16. Vietnam’s imports are projected up 6% to 927,000 tons in 2015/16 and Indonesia’s imports up 4% to nearly 800,000 tons.

U.S. exports which experienced good demand for much of 2014/15, are expected to remain stable in 2015/16 at 2.3 million tons. On the other hand, India’s exports are projected down 50% in 2014/15 to 1 million tons, but could recover partially in 2015/16 to 1.2 million tons. World cotton area is forecast down 7% to 31.3 million hectares in 2015/16 due to low prices in 2014/15 and as a result, world cotton production is projected down 9% to 23.9 million tons. The announcement of a lower subsidy for 2015 in China is expected to lead to a 12% decrease in area to 3.8 million hectares. Production in China could fall to 5.4 million tons in 2015/16. Area in India reached a record 12.3 million hectares in 2014/15, but will likely decrease 5% to 11.6 million hectares in 2015/16. Applying the average yield in the last three years would result in a 2% decline in production to 6.4 million tons. Area in the United States is forecast to fall 15% to 3.3 million hectares due to low international prices and adverse weather conditions. Assuming a yield of 912 kg/ha, production in the United States is projected down 14% to 3 million tons.

World cotton consumption increased 3% in 2014/15 to 24.3 million tons and is projected to grow another 2% in 2015/16 to 24.9 million tons. Domestic cotton prices in China fell from an average of 139 cents/lb in 2013/14 to just under 100 cents/lb in the first five months of 2015 due to the ending of China’s reserve policy and a shift toward a more market-oriented policy. Assuming prices remain around the same level in 2015/16, cotton consumption is likely to remain stable at 7.7 million tons in 2015/16. Instead, consumption is expected continue growing in nearby countries. Consumption in India, the second largest consumer of cotton lint, is projected up 3% to 5.4 million tons in 2015/16. Despite strong competition from yarn imports, Pakistan’s consumption is expected to grow 3% to 2.6 million tons in 2015/16. World ending stocks are forecast to decrease for the first time since 2010/11, falling 5% to 20.8 million tons in 2015/16. Although China’s ending stocks are projected down 6% to 11.8 million tons, it would still hold 56% of the world’s stocks at the end of 2015/16. After increasing 19% in 2014/15 to 9.4 million tons, ending stocks held outside of China are expected to decline 3% to 9.1 million tons in 2015/16.

Indian Cotton Federation (ICF):

The Indian Cotton Federation (ICF) expects that in states like Gujarat and Maharashtra, farmers may shift from cotton to pulses and groundnut as they find cotton farming unviable due to untimely rains and lower than MSP prices.

Cotton Association of India (CAI):

The Cotton Association of India (CAI) has revised its cotton crop estimate for the season 2014-15 that begin on October 1, 2014 at 384.50 lakh bales (170kg each) from 391 lakh bales estimated a month ago. CAI’s April estimate is well below Cotton Advisory Board (CAB) India cotton production projection for 2014-15 at 390 lakh bales.

The Cotton Association of India (CAI) has pointed out that exports are lagging this year, and there is only a limited demand for Indian cotton. China, which imported more than 20 million bales of raw cotton in 2012-13, is forecast to import only 7.5 million bales this season, the CAI has noted.

Government Reports:

India’s textile and garment exports registered an almost flat growth at $41.4 billion in 2014-15, against $40.8 billion in the previous fiscal, falling short of this year’s target of $45 billion. The textiles ministry has set an exports target of $47.5 billion for the current fiscal. The government is finalizing the new ambitious national textiles policy that aims to raise exports to $300 billion by 2024-25 and create 35 million jobs. The textiles ministry has sought INR 130 billion for the technology upgradation fund (TUF) scheme for the 12th Five Year Plan (2012-17).Textiles minister Santosh Kumar Gangwar has stated that the government has approved 20 textiles parks under the scheme for integrated textiles parks (SITP) in the past one year. These are likely to create 75,000 jobs. Higher textile exports augur well for the economy as they accounted for 12.6% of the overall exports last fiscal and the sector employs 35 million people, having become the largest employer after agriculture. Govt. Releases 2014-15 3rd Advance Estimate For Cotton The government of India has released its 3rd advance estimate for 2014-15 cotton at 35.32 million bales. The estimate is slightly higher than its 2nd advance estimate, but lower than 2013-14 final estimates and higher by 2.85 million bales than the average production of last 5 years. Government’s 2nd advance estimate for 2014-15 was at 35.15 million bales and 2013-14 final advance estimates was 35.9 million bales.

Technical Reports:

  1. ICE COTTON

Higher Tops Higher Bottoms still in place, remain accumulate in dips market. Short term uptrend intact, but the rally yet to pick up steam. Ice Cotton can test 72-74 areas, which would be key hurdle. Below 62 areas, weakness can creep in again in short term. 57 now remains a key medium to long term bottom. Remains buy for short to medium term above 62 for targets of 74. Key Supports 63.00-62.00-59.83 57.30, Key Resistances 68.10-70.30-71.50-73.80.

  1. MCX COTTON

Short term uptrend intact, remains buy in dips market. Strong upside momentum expected if able to cross 16900. All significant dips can be used to accumulate for targets of 18000 levels in medium term, stop loss below 15200 advisable. 13970 remains a key medium to long term bottom. Key Supports 15900-15600-15430-15280, Key Resistances 16900-17250-18300-18700.

  1. ACE COTTON

Key Supports 33570-32450-31890

Key Resistances 35220-36000-36480

Top Interviews: 

About the author:

Mr. Manish Daga popularly referred by the cotton industry as COTTON GURU™ is a qualified textile technologist. He is India’s only Cotton Valuer registered by the Indian Institution of Valuers, India. He is the fourth generation in cotton trade, advisory and broking services from his family. The P. R. D. Cottons Group is 110 year old in cotton business with continuity. Call or mail for any information, suggestion, feedback or to know how our Company can benefit from the knowledge and experience of COTTON GURU™. Call on +91 9820072705 or mail to manish@cottonguru.org

CottonGuru’s Fortnightly Cotton Market Newsletter 13th May 2015

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INDIA Arrivals: (as on date: 12-05-2015)

Arrivals in the country were estimated at 32,000 bales as against 45,000 bales received last fortnight. Arrivals in north India were 650 bales Gujarat 15000, Maharashtra 3000, Madhya Pradesh Andhra Pradesh- Telangana 8000 and Karnataka 3000.

Weather: 

Early report by world Meteorological report and other international report model suggest below average monsoon for India in the year 2015. Indian meteorological department also suggests a weak monsoon due to early rain. Fresh updates will be issued after 15th may. The future too appears bleak for the rain-dependent sector as the meteorological department has predicted a below-normal monsoon. Agri Crisis on the horizon: Agriculture in India is going through one of its worst periods in recent times. On the one hand farm incomes have been dented by falling prices of crops—both of key crops like rice, wheat and cotton as well as cash crops like rubber, basmati rice, guar gum and potatoes. A drought-like situation in several states last year and unseasonal rains more recently have damaged crops in India.

For the period covering October 2014- March 2015, India exported 3.7 million bales (170 Kgs). But during the same timeframe in the last season (October 2013-March 2014), India had exported around 8.5 million bales. Comparing the two years, it is evident that there is a decline of about 50% in cotton export.

In addition to the China factor, the Indian cotton prices are not competitive enough in the international market, making Indian exports less attractive.While the export market is not presenting a pretty picture, the domestic market is picking up with cotton prices having an upward trend. After reaching a record area of 12.3 million hectares in 2014/15, area in India is forecast down 5% to 11.6 million hectares, and production down 3% to 6.4 million tons in 2015/16. Tight supply and limited stock position of cotton may increase the price of Indian cotton by 10%.

Cotton Corporation of India (CCI)

Stock sales by state-run Cotton Corporation of India (CCI) have crossed one million bales for the first time in two years, although arrivals of the fibre in the market have slowed down. The CCI sold 1.08 million bales of cotton until May 7 had procured 2.29 million bales. CCI is selling 70,000-75,000 bales of cotton on a daily basis, said the official. One bale equals 170 kg. since last few days cci has increased daily sales offer from 50000 bales to 0.1 million bales i.e. one lakh bales. CCI started offloading substantial stocks since April after the textile industry had complained to the textile ministry of an artificial shortage in the market created by the state-run procurement agency. Refuting the allegations, CCI CMD Mr. B.K Mishra had said the country was expecting a bumper harvest of 39 million bales in 2014-15, way above the requirements by textile mills, especially when export demand remained slow. Recently Mr. Mishra had said to date, the CCI has procured around 8.7 million bales of cotton from farmers just a little short from the record 8.9 million bales of purchases in 2008-09. CCI would factor in interests of small and marginal mills while undertaking sales.

International Market: 

As per the latest ICAC report, world area is projected to decrease 7% to 31.2 million hectares, and assuming a world average yield of 765 kg/ha, production is forecast down 9% at 23.9 million tons from 2014/15. China is expected to end 2014/15 with 12.4 million tons of stock, up 3% from last season, and stocks outside China are projected up 26% to 9.4 million tons, which is the highest level in 35 years. Excess stocks held outside China are likely to keep international cotton prices down in 2015/16. In 2015/16, consumption is expected to remain stable at 7.7 million tons as domestic yarn competes with imports. In the first three months of 2015, imports of cotton yarn into China increased 15% to 590,500 tons compared with the same

5

period in 2014. Much of these imports come from nearby countries such as India, Pakistan, Bangladesh and Vietnam. After a significant fall in 2014/15 to 7.5 million tons, world imports are expected to stage a partial recovery, increasing 3% to 7.7 million tons in 2015/16.

China: The Chinese government announced a cotton subsidy price of 19,100 yuan per ton for 2015, down from 19,800 yuan per ton in 2014. Accordingly, area in China is expected to contract 12% to 3.8 million hectares, and production could decrease by 16% to 5.4 million tons, ICAC said. China has slowed its purchase of cotton and yarn, to discourage its power and labour-intensive textile industry. A recent Edelweiss Financial Services report estimates China’s cotton import at a 5-year low of 1.6 million tons (mt) so far this season, against 3.08 mt the previous year. According to Joe Nicosia, the global platform head for cotton at Louis Dreyfus Commodities, estimates for cotton production in China for the coming year fall anywhere from 24 to 28 million bales.

Pakistan: Pakistan’s production is on track to reach over 2.3 million tons in 2014/15, around 100,000 tons under peak production of 2.4 million tons achieved in 2004/05. Pakistan’s average yield is expected to set a new record in 2014/15, and is projected up 14% to 810 kg/ha. However, in response to low prices, cotton area in Pakistan is forecast down 6% to 2.7 million tons, and production down 11% to 2 million tons in 2015/16.

Vietnam: According to the USDA, Vietnam’s cotton production in 2014-15 may fall short against the previous marketing year. Reportedly, Vietnam’s 2013-14 cotton production is estimated at 1,270 metric tons (mt.) or 5.82 thousand bales. The report also says Vietnam’s cotton consumption growth rate is expected to decelerate in the marketing year 2015-2016. The slowdown is likely to be triggered by China’s reduction of yarn imports on the back of incentives offered by the Chinese government to its spinners who purchase more cotton from Chinese reserves. Vietnam also imports cotton from India. In 2014, cotton imports from India were valued at $266.170 million, accounting for 18.5 per cent of $1.443 billion worth of cotton imported by the Southeast Asian nation.

AUSTRALIA: Early signs of El Nino also emerged on Australia’s east coast, with a poor end to the wet season in Queensland and a dry autumn in Victoria. Australia’s weather bureau has projected at least a 70 % chance of an El Nino emerging from July, said the weather pattern had already formed. The other countries bracing for an El Nino are China, Indonesia and Malaysia.

Mali: Despite Mali’s recent economic and political woes, the landlocked country is one of the leaders in cotton productivity across the world. Cotton, which employs more than 3 million farmers, remains the main cash crop in Mali, producing 450,000 tons in 2013 and placing Mali as the largest producer of cotton in Sub-Saharan Africa, and the 7th largest in the world.

U.S. In the United States, prices for some competing crops are likely to discourage farmers from planting cotton, and area is expected to fall 17% to 3.3 million hectares. Assuming an average yield of 912 kg/ha, production in the United States could reach 3 million tons in 2015/16.

Important Reports: 

USDA: The U.S. cotton 2015/16 projections include marginally higher supply and disappearance compared with 2014/15, resulting in ending stocks and prices on par with the preceding year. The increase in beginning stocks of nearly 2.0 million bales is mostly offset by an 11-percent decrease in production, due mainly to reduced planted area. Harvested acres and yields are based on historical averages by region, with adjustments to the Southwest to reflect favorable moisture conditions. Domestic mill use is projected higher while exports are at the prior year’s 10.7 million bales. The marketing year average price received by producers is projected to range from 50 to 70 cents per pound, with the midpoint of 60 cents, unchanged from the current season. World 2015/16 cotton projections show a decline in global stocks for the first time since 2009/10. As with the U.S. estimates, higher beginning stocks compared with last season are about offset by sharply lower world production, as most of the world’s cotton-producing countries respond to lower prices. World consumption is raised 3.5 percent due mainly to positive world economic growth and the lagged effect of falling cotton prices during 2014/15. World trade is reduced marginally, as a sharp drop of 1.7 million bales in China’s imports is mostly offset by increases in other countries. China’s lower production and imports, combined with a consumption increase of nearly 3 percent, are projected to reduce ending stocks by about 3.0 million bales, accounting for more than three-fourths of the decline in world stocks. Despite this reduction, world stocks of 106.3 million bales would still be the second highest on record. For 2014/15, U.S. production is raised marginally, based on lower harvested area and higher yields, reflecting the season final report. Slightly higher world ending stocks incorporate a number of current and historical data adjustments, resulting in increases for Argentina, China, and Benin, partially offset by decreases for India, Malaysia, and Brazil.

ICAC: 

2015/16 World Area and Production Down

World area is projected to decrease 7% to 31.2 million hectares, and assuming a world average yield of 765 kg/ha, production is forecast down 9% at 23.9 million tons from 2014/15. After reaching a record area of 12.3 million hectares in 2014/15, area in India is forecast down 5% to 11.6 million hectares, and production down 3% to 6.4 million tons in 2015/16. The Chinese government announced a cotton subsidy price of 19,100 yuan per ton for 2015, down from 19,800 yuan per ton in 2014. Accordingly, area in China is expected to contract 12% to 3.8 million hectares, and production could decrease by 16% to 5.4 million tons. In the United States, prices for some competing crops are likely to discourage farmers from planting cotton, and area is expected to fall 17% to 3.3 million hectares. Assuming an average yield of 912 kg/ha, production in the United States could reach 3 million tons in 2015/16. Pakistan’s production is on track to reach over 2.3 million tons in 2014/15, around 100,000 tons under peak production of 2.4 million tons achieved in 2004/05. Pakistan’s average yield is expected to set a new record in 2014/15, and is projected up 14% to 810 kg/ha. However, in response to low prices, cotton area in Pakistan is forecast down 6% to 2.7 million tons, and production down 11% to 2 million tons in 2015/16.

In the last two seasons, sales from China’s national reserve were well underway in April with around 1.3 million tons sold at the end of April 2013 and 1.4 million tons at the end of April 2014. Although China announced last spring that it was ending its reserve policy, the Chinese government still holds over 11 million tons, and sales were initially anticipated to occur this spring. However, sales have not yet begun and the Chinese government has not announced an official date for sales to start this year. To bolster sales of cotton from the current season’s domestic crop and potentially sales from the reserve, the Chinese government limited import quota in 2015 to the volume required under WTO rules of 894,000 tons. Although domestic prices have fallen, they are still relatively high compared to international prices and to polyester prices. China is expected to end 2014/15 with 12.4 million tons of stock, up 3% from last season, and stocks outside China are projected up 26% to 9.4 million tons, which is the highest level in 35 years. Excess stocks held outside China are likely to keep international cotton prices down in 2015/16. World consumption is forecast up 2% to 24.1 million tons in 2014/15. Just before the start of 2014/15, cotton prices fell quickly while polyester remained flat. However, in the following months, polyester prices have also dropped, diminishing the likelihood that cotton will regain market share from polyester. Cotton consumption is likely to grow modestly next season, driven by increases in population and moderate economic growth. In 2015/16, world consumption is projected up 2% to 24.5 million tons as spinning shifts from China to the rest of Asia. Low domestic cotton prices may enable cotton consumption in China to rise 2% to 7.7 million tons in 2014/15 after falling for four consecutive seasons. In 2015/16, consumption is expected to remain stable at 7.7 million tons as domestic yarn competes with imports. In the first three months of 2015, imports of cotton yarn into China increased 15% to 590,500 tons compared with the same period in 2014. Much of these imports come from nearby countries such as India, Pakistan, Bangladesh and Vietnam.

After a significant fall in 2014/15 to 7.5 million tons, world imports are expected to stage a partial recovery, increasing 3% to 7.7 million tons in 2015/16.

Better Cotton Initiative (BCI):

The annual report of Better Cotton Initiative (BCI) says Better Cotton now makes up

5% of the national cotton production in India. The 5th Better Cotton harvest in India

saw 84 % increase in numbers of smallholder farmers, spread across 10 different

states.

India Cotton Association Limited

Indian Cotton Association Limited (ICAL) president Mahesh Sharda said cotton was

a major cash crop cultivated on around 127 lakh hectares by more than 60 lakh

farmers in India.

To help cotton growers, ICAL is planning to adopt some cotton growing villages in

association with technical expertise of Monsanto India Limited where both partners

will help cotton growers from sowing till harvesting to guide them on better

management practices in cotton cultivation and enhance their productivity during

the upcoming Kharif 2015 sowing season through a series of on field activities

The ICAL will constitute a team of dedicated people representing both the partner

organisations, survey representative village and launch the farmers’ awareness

programme on productivity enhancement, well before sowing at adopted villages.

Cotton Association of India (CAI):

CAI Estimates Cotton Output For 2014-15 At 391 Lakh Bales

  • Cotton Association Of India’s (CAI) March Month Estimate Of Crop OutputStood At 391 Lakh Bales For 2014-15 Season Compared To 396 LaKh Bales                                         Estimate In February Month
  • Main Reason For Reduction In The CAI’s Crop Estimate By 5 Lakh Bales Than Compared With That Released During The Last Month Is Untimely Rain In The Central Zone.
  • Total Crop In The Central Region In March Is Estimated At 214.25 Lakh Bales Compared To 235.75 Lakh Bales Last Year
  • CAI Estimates 2014-15 Total Cotton Supply At 46 million bales Bales, While Domestic Consumption Is Estimated At 31 million Bales, Leaving An Available Surplus Of 15 million Bales
  • CAI Estimated Cotton Arrival Reached At 318.45 Lakh Bales As On 31 March

Government Reports: 

Textile sector has been identified among one of the 25 sector covering under “Make in India” drive. India homes to world’s 24% spindles, 8% rotors and it is second largest manufactures of cotton and silk. Besides this, India enjoys comparative advantage of skilled manpower and cost of production over other countries preferred destination for investment. Govt. allowed 100% FDI in textile under automatic route subject to all applicable regularity rules. Already several foreign companies invested in India in value chain added sector like Zara and Mango from Spain, Benetton, Levi’s etc and reputed machinery manufacturers. Govt. also extended the applicability of anti dumping duties on poly amide 6,6 to reduce the effect of China in this sector. Apparel sector of India achieved the growth of 18% from April 14 to Sept 14 against 15.7 % in year 2013-14. Technical textile sector also witnessed fast growth. In conventional area, top companies performed well and expanded their business. For eg -Trident Ltd ( US $ 1 Billion business) has inaugurated the world’s largest terry towel plant and has laid down the foundation stone for composite Mills in Budhni with an investment of INR 24 billion.

Centre raises MSP of cotton by Rs. 50 per quintal 

Taking note of the distress to cotton growers due to fall in cotton prices, the Government announced a hike of INR 50 per quintal each in the minimum support price of medium and long staple cotton for 2014-15. The MSP (per quintal) for cotton was fixed at Rs. 3750 for medium staple and Rs. 4050 for long staple 2014-15. The government has lowered the estimates of cotton production for the 2014-15 season to 390 lakh bales from 400 lakh bales due to untimely rains and hail storms across the country, as reported by Union Textile Minister Mr. Santosh Kumar Gangwar.

Top Interviews: 

In order to share the vision of the thought leaders, COTTONGURUTM is interviewing India’s top 10 mills, top 10 Ginners and relevant leaders of the textile industry to get their ideas and views.