Although the epidemic in India has eased in the past two weeks, the epidemic is far from over. Entering June, the blockade in some areas of India will be ended or relaxed, while in other areas it may be strengthened and extended. Last week, lockdowns were lifted in some parts of India, but it is unclear whether textile factories can fully resume production.
New Delhi is the hardest hit area by the epidemic. The current epidemic situation has improved. The operating rate of the clothing export distribution center is 40-50%. About 20% of the orders are delayed or transferred to Bangladesh, Sri Lanka and Vietnam. Decreased operating rates of garment factories have led to reduced demand for gauze. There are about 120 cotton mills in Andhra Pradesh, which consume about 4 million bales of cotton annually. The current operating rate is only 40%. At least two international brands have reported problems in the supply chain.
At present, there is very little cotton on the market in India in 2020/21, and domestic cotton prices continue to rise. The ex-warehouse price of S-6 ginners is 48,000 rupees/kander, which is about 85 cents/pound. . The tight domestic cotton supply has helped CCI continue to digest inventory, the price is lower than the spot market, and transactions have been very active in recent days. At the same time, rising domestic cotton prices have also prompted textile mills to increase their purchases of imported cotton.
Despite the serious domestic epidemic, cotton seed sales and shipments in India are proceeding normally. With the arrival of monsoon rains this week, cotton farmers have begun to expand sowing. It is reported that the Indian government will provide free seeds for oil crops this year. The area of oil crops is expected to expand by 637,000 hectares, which may affect the cotton planting area. </p
