India Will Review Cotton Export Ban On Friday

According to information from New Delhi on March 6th, the India ministerial group will review the ban on cotton exports announced on Monday on Friday, when the Minister of agriculture objected to the export ban and said it would harm the interests of farmers.

This is the second time in nearly two years that the Ministry of Commerce of India has banned cotton exports, which means that the fear of low inventory will bring upward pressure on domestic cotton prices.

Agriculture minister Sharad Pawar said on Tuesday that he had

Pawar told reporters in an industry conference gap: "I have mentioned this to the prime minister.

"

"This decision has met with opposition. Now is the time for the prime minister to declare his position.

"

Late Tuesday, textile minister Kiran Dhingra said the ministerial group will discuss the supply and demand of cotton on Friday.

If the cotton price falls to the national support price, it is recommended that India Cotton Corporation of India buy cotton from the farmers, and it is also known as the "Corporation cotton".

Dhingra said that because of the export volume of up to 9 million 400 thousand packages, this year's carry over inventory has dropped to 3 million 600 thousand packages, resulting in the ban.

The government wants to keep the stock in 5 million packages.

Each pack is 170 kilograms.

The Ministry of trade said Monday.

As soon as the news came out, ICE cotton futures rose sharply, while domestic cotton prices began to fall in India.

India is the second largest cotton exporter after the United States, and more than 70% of its cotton exports are sold to China.

Pakistan, Bangladesh and Thailand are also their main markets.

Pawar said that when the ban came out, traders stopped buying cotton to farmers in Gujarat, Maharashtra and Karnataka, and they expected prices to fall further.

Gujarat and Maharashtra are the two largest cotton producing areas in the country.

Domestic Shankar-6 cotton prices have fallen 6% since Monday, to 33000 rupees per HKG (356 kg).

In the past year,

India's cotton output is expected to reach 34 million 500 thousand packs (170 kg / pack) in the market year beginning on 0 1, with a total of 33 million 900 thousand packs last year.