Cotton Import Certificate

According to feedback from several international cotton merchants and cotton import enterprises, since early October, Indian cotton export quotation and McX futures price have both continued to rise. In January / March, the price difference between "ship cargo" and Brazilian cotton and American cotton has been narrowing, and the competitiveness has decreased compared with August / September. However, the inquiry and demand of organic cotton and BCI cotton in India in 2019 / 20 and 2020 / 21 are very active, and the pressure of supply and demand needs to be released.

A large cotton enterprise in Zhangjiagang said that at present, most domestic cotton mills and middlemen need to bring BCI certificate when purchasing Indian cotton. Otherwise, the price will be greatly reduced or they will directly purchase Brazilian cotton and Central Asian cotton. Recently, pradip Jain, chairman of khandesh ginners Association, said that due to heavy rainfall, the loss of crops is about 10%; in addition, the harvest of new cotton will be delayed by about 15 days compared with the normal time. Therefore, the quality and grade of organic cotton in India in 2020 / 21 is expected to decline, and the contradiction with demand is expanded compared with the previous two years.

From the perspective of port quotation, the number of Indian cotton cleared at Qingdao port from October 12 to 13 was significantly lower than that in August / September. Moreover, due to the tight cotton import quota within 1% tariff (more cotton related enterprises need quota cooperation for customs clearance), some traders gradually increased bonded cotton RMB, requiring purchasers to take their own quota for customs clearance; On the 13th, the quotation of M 1-5 / 32 cotton with 1% quota in Huangdao port was 12600-12700 yuan / ton, while that of M 1-5 / 32 Indian cotton for customs clearance was 13750-13900 yuan / ton. It is understood that the quotation of M 1-5 / 32 Indian cotton (aged cotton in 2019 / 20) for shipment in October / November 13 is concentrated at 71.90-72.90 cents / pound (CNF), while that of new cotton m 1-5 / 32 (including M 36) is 74.90-75.50 cents / pound (including M 36), and the price difference between them is only 2-3 cents / pound.

Why is India's cotton price still rising again and again under the adverse circumstances of out of control epidemic situation, appreciation of rupee and cotton production growth in 2020 / 21

First, CCI opened the MSP acquisition again (significantly higher than the current spot delivery price of seed cotton), which significantly increased the cost of lint cotton; second, in the past week, the main contract of ice cotton futures broke 65 cents / pound and 68 cents / pound, and the sword pointed to 70 cents / pound; third, the main cotton producing areas in the United States were constantly attacked by heating belt storms, heavy rain and rain, and the concerns of cotton production decline and quality decline were more and more prominent; India's export competitiveness is expected to recover compared with its old rival, the United States cotton. Fourth, although India's epidemic situation has thrown out the "King's bomb", the government still forced to start the economy, "focusing on employment, light on epidemic prevention". Therefore, the load of textile, clothing and other industries is still at a relatively high level, and the recovery momentum of cotton consumption continues.