Interviews
Difference in global & Indian cotton prices narrowing
16 Aug '11
2 min read
International prices of cotton have always been on a higher side when compared with those prevailing in the Indian cotton market.
But the trends prevailing in the Indian cotton markets in the last few days indicate that the difference in prices is gradually narrowing.
On August 1, the Cotlook Index stood at US $1.138 per pound. Its equivalent price in Indian rupees per kg was at Rs 110.58 per kg at the then prevailing exchange rate of Rs 44.07 to the US dollar.
On the same day, prevailing price of comparable quality of cotton in the Indian market was at around Rs 87.18 per kg, a big difference of Rs 23.40 per kg.
However, once the Indian government opened up exports of quota and put it under Open General License (OGL), Indian cotton prices started moving northwards and difference started narrowing.
On August 9, the difference had reduced to just Rs 11.11 per kg on a day when Indian rupee equivalent price of Cotlook index stood at Rs 109.54 per kg and Indian cotton prices were quoted at Rs 98.43 per kg, at an exchange rate of Rs 45.21 to the dollar.
On August 11, the difference however once again widened to Rs 14.60 per kg as Indian rupee equivalent price of Cotlook Index rose to Rs 110.21 per kg and Indian prices declined to Rs 95.61 per kg, before once again falling to a difference of Rs 13.85 on August 12.
Click here to view and compare Cotlook and Indian cotton price trends from Augsut 2011.
But the trends prevailing in the Indian cotton markets in the last few days indicate that the difference in prices is gradually narrowing.
On August 1, the Cotlook Index stood at US $1.138 per pound. Its equivalent price in Indian rupees per kg was at Rs 110.58 per kg at the then prevailing exchange rate of Rs 44.07 to the US dollar.
On the same day, prevailing price of comparable quality of cotton in the Indian market was at around Rs 87.18 per kg, a big difference of Rs 23.40 per kg.
However, once the Indian government opened up exports of quota and put it under Open General License (OGL), Indian cotton prices started moving northwards and difference started narrowing.
On August 9, the difference had reduced to just Rs 11.11 per kg on a day when Indian rupee equivalent price of Cotlook index stood at Rs 109.54 per kg and Indian cotton prices were quoted at Rs 98.43 per kg, at an exchange rate of Rs 45.21 to the dollar.
On August 11, the difference however once again widened to Rs 14.60 per kg as Indian rupee equivalent price of Cotlook Index rose to Rs 110.21 per kg and Indian prices declined to Rs 95.61 per kg, before once again falling to a difference of Rs 13.85 on August 12.
Click here to view and compare Cotlook and Indian cotton price trends from Augsut 2011.
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