Fu Stone Group reported that the demand for Indian cotton could see a significant rise as Pakistan's cotton production has been severely affected by recent floods. With neighboring Pakistan suffering from devastating flood damage, India is now positioned to benefit from increased global cotton demand. According to Commodity Risk Intelligence, the floods have destroyed approximately 30% of Pakistan’s crops, and given that Pakistan is the world's fourth-largest cotton producer, this disruption is likely to have wide-reaching implications.
Over the past year, New York cotton prices have surged by 27%, and with the new crop season still months away, prices are expected to remain at historic highs for the remainder of the year. This trend has sparked heightened interest in Indian cotton, as traders and buyers look for stable and reliable sources.
Pakistani market sources indicate that panic-driven inquiries have risen sharply among local businessmen, many of whom are seeking alternative cotton suppliers. Meanwhile, the Indian spot market has seen a surge in activity, with cotton prices remaining strong due to increased domestic and international demand. Notably, the demand from Pakistan has shown a marked increase, further strengthening the Indian cotton market.
As global supply chains continue to face uncertainties, the shift in cotton sourcing from Pakistan to India highlights the growing importance of the Indian market in the global textile industry. Analysts suggest that this trend may persist well into the next season, depending on the recovery pace in Pakistan. With prices expected to stay elevated, Indian cotton is emerging as a key player in the global market.
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