IndexBox report: cotton prices in India are expected to rise by 5 per cent in 2022
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08 February 2022, Mumbai:
As per a new report by IndexBox, cotton prices in India are expected to rise by 5 per cent in 2022 on account of strong global demand and limited supply.
In 2021, the average cotton price surged by 41 per cent Y-o-Y to $2.23 per kg. Despite the global cotton production rebounded after a 2020's drop last year, reaching the pre-pandemic level of 26.3M tonne, growing demand outstrips supply.
In H1 2022, cotton prices are projected to increase, as global production at the beginning of the year is lower than in the previous months due to smaller crops in India and the U.S. This year, the average annual cotton price is expected to pick up by 5 per cent Y-o-Yto approximately. to $2.34 per kg.
Instigated by boosting demand and high domestic cotton prices, China is forecast to ramp up imports sharply, also stimulating the price rally.
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