India: Weaker global markets to hit cotton export demand

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RAJKOT, DEC. 12:

Even as demand for cotton drops, the Kisan Sangh has started a protest to put pressure on the State to increase the minimum support price, leading to lower arrivals in Saurashtra.

The Sankar-6 variety traded at Rs 34,700-34,800 a candy of 356 kg. Kapas or raw cotton sold at Rs 830-870 for a maund of 20 kg. While about 50,000 bales of 170 kg arrived in Gujarat, 1.55 lakh bales arrived in rest of the country. About 500-600 trucks arrived from Maharashtra and the produce offloaded sold at Rs 850-870 a maund.

Export demand will fall further as international markets are weakening, said a Rajkot-based broker.

According to the US Department of Agriculture (USDA) reports, as exporters await greater clarity on tariff levels in and interest from China, export registrations in India may slow around mid-December. India’s export registrations have reportedly touched 2 million tonnes on purchases from China and Bangladesh.

The country is estimated to have exported around 6 million bales of cotton in 2010-11 season. For the current season, USDA has kept output forecast unchanged for India at 35 million bales.

Source: http://www.thehindubusinessline.com/markets/commodities/article2709280.ece

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