Home / Knowledge / News / Textiles / High cotton prices add to textile mills' problems
High cotton prices add to textile mills' problems
21
Jun '16
The sudden spurt in cotton prices this month has added to the problems faced by textile mills, particularly in southern Indian states of Telangana, Tamil Nadu and Andhra Pradesh.

Price of Shankar-6 variety of cotton has increased from Rs 37,300 per candy of 356 kg at the beginning of this month to Rs 40,950 per candy on June 20, 2016, showing a rise of nearly 10 per cent.

Cotton price remained in stable range of Rs 32,000 per candy to Rs 34,000 per candy last year. In January 2016, it was Rs 34,000 per candy, and slowly increased to Rs 34,300 per candy in April this year.

But the price increase has acquired momentum this month, especially during the two-day period from 15th to 17th June. The average price of Shankar-6 was Rs 39,850 per candy on June 15, which rose to Rs 40,925 on June 17, up Rs 1,075.

This sudden increase in prices has added to the already existing problems faced by textile and spinning mills, such as slowdown of exports, and devaluation of Chinese renminbi last August. The problem is especially acute for those spinning mills that do not have enough raw material stock.

To meet this situation, textile and spinning mill owners in southern Indian states have decided to shut down operations twice a week, according to media reports.

Late arrival of monsoon is among the reasons being cited for the abnormal increase in cotton prices.

Some industry bodies have suggested setting up a Cotton Price Stabilisation Fund to provide working capital at 7 per cent interest rate.

With over 49 million spindles, the Indian textile industry is the second largest after China. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

IOC, MCPI to set up ₹1000 cr PSF unit in Odisha

Textiles | On 23rd May 2018

IOC, MCPI to set up ₹1000 cr PSF unit in Odisha

Indian Oil Corporation (IOC) has teamed up with Materials Chemicals...

Courtesy: Marks and Spencer

Apparel/Garments | On 23rd May 2018

M&S to close 14 Clothing & Home stores by 2019

Marks & Spencer (M&S), a leading British multi-national retailer,...

Garment products dominate across textile businesses: FESPA

Textiles | On 23rd May 2018

Garment products dominate across textile businesses: FESPA

Garment products dominate across all textile businesses, with sports...

Interviews View All

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search