Spinning plant in southern India will import cotton

As the price of cotton in the international market fell far lower than the price of cotton in India, spinning mills in southern India are now importing cotton. In addition, spinners can choose to pay within six months without paying any interest, after which they must pay an annual nominal interest rate of less than 3%.

In early May, the price of cotton was 85.7 cents/lb. Now international cotton prices have fallen by 20% to 70.52 cents/lb. But at this stage, the rupee has fallen, making imports more expensive. Therefore, the decrease was 5.06%.

However, cotton prices in the Indian market remained stable. The transaction price was about Rs.9,200/cash on Friday.

Similar cotton import prices for Shankar 6 are 75 cents/lb, while Indian cotton export prices are 80 cents/lb.

Spinning mills in southern India currently import African cotton because African cotton is cheaper.

According to reports from relevant agencies, the Southern Plant has so far imported 70,500 bales (170 kg each) of cotton, and the import cost is Rs 34,000/candy. The price of Gujarat cotton trade is Rs. 37,000 and the cotton price in Andhra Pradesh is Rs. 38,000.

Since May, India’s export orders have remained basically stagnant. Between October and May, 11 million bales of cotton were exported. However, after that, only 1 million bales were exported.

As international prices fell far below Indian prices, exports were almost stagnant. Demand from China has increased, but China has imported large quantities of US cotton and established cotton reserves.

Even Bangladesh did not purchase Indian cotton in recent weeks. Even after India released its exports, it only exported 1 million bales of cotton in May.