India: Cotton Sector Yields Improve though Delivery and Offtake Struggles

Cotton production prospects are good for market year (MY) 2016/17 though arrivals are delayed. The supply chain is managing through the Government of India demonetization effort as traders and producers report issues with payments and movement of cotton within the domestic market. The consumption forecast is lowered with limited mill buying. Since the demonetization announcement the Indian currency has weakened by three percent against the U.S. dollar and provided unanticipated export support.

India: Cotton Sector Yields Improve though Delivery and Offtake Struggles