Cotton Increases Due To India’s Need Cotton’s Demand Remains High

Prices for cotton candy rose by 0.93% to settle at 56,500, fueled by strong demand from important customers like Bangladesh and Vietnam for Indian cotton. Nevertheless, the limited worldwide yarn demand coupled with a slowing milling demand restrained the upside. A stronger crop in nations like Australia may have moderated the upward trend.

For the forthcoming season, 2024–25, the International Cotton Advisory Committee (ICAC) predicted gains in cotton-producing areas, production, consumption, and trade. Meanwhile, due to decreased output and rising demand, it is predicted that cotton inventories in India will fall by around 31% in 2023–2024, hitting their lowest point in more than three decades.

This would limit exports from the second-largest producer in the world, bolstering world prices but also putting pressure on regional textile companies’ profit margins. India’s cotton production is projected to be 25.4 million 480-pound bales for the marketing year 2024–2025. As global demand for yarn and textiles grows, mill consumption is anticipated to increase to 24.5 million bales.

The removal of import taxes on extra-long staple (ELS) cotton is expected to result in a 20% rise in imports. On the other hand, a 2.4 million metric tonne prediction for China’s cotton imports in MY 2024–2025 is attributed to increased local and worldwide demand for textile and clothing products. It is anticipated that China’s cotton production will decline in other regions but remain stable in Xinjiang throughout that time.

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