By admin       2019-03-13

Notwithstanding these supply side developments, trade representatives believe that export of about 50 lakh bales of cotton is a strong possibility. Bangladesh and China are two of India’s largest cotton buyers. After years of destocking, the world’s largest importer and consumer China will have to begin to restock cotton. The Asian major has been buying the natural fibre from Brazil. India is now set to join the race. An improvement in off-take and rise in price should send a positive signal to cotton growers for the upcoming kharif season planting. Notwithstanding pest issues in the past two years, positive price signals can translate to coverage of about 120 lakh hectares. Subject to satisfactory temporal and spatial distribution of rains, India’s cotton production has the potential to rebound to well over 350 lakh bales in 2019-20. Signals from the US too suggest a possible expansion in the planted area and a bigger crop in 2019-20. So, the world market will have abundance of cotton with output exceeding consumption and a possible stock build. To what extent the anticipated slowdown in global economic growth will impact cotton consumption remains to be seen.

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