By admin       2019-03-13

March 11, 2019 - After the initial promise of an attractive price rise following expectations of export to China early in the season, the cotton market disappointed stakeholders, particularly growers. With domestic mills keeping off and export order flow decelerating, market rates actually dipped towards the minimum support price. Global factors, too, exerted an influence. The US cotton market faced a sharp downward correction because of the ongoing trade friction with China, which has resulted in the latter imposing a retaliatory duty of 25 per cent on American cotton. From over 80 cents a pound, US cotton slumped to around 70 cents a pound a couple of months ago. In other words, sentiment had turned weak. Now, a revival is on the cards, especially in the Indian market. Export demand is just about beginning to pick up. Sensing that the market may have bottomed out, domestic mills, too, have begun to make purchases to build inventory. Cotton prices are clearly showing an uptick and every move above the minimum support price should bring relief to growers and policymakers alike.

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