Home / Knowledge / News / Textiles / Government lifts ceiling on price of cotton
Government lifts ceiling on price of cotton
26
Aug '11
After keeping the per kg cotton price fixed for several months, the Ethiopian Government has lifted the ceiling that it had imposed on the price of the commodity. This has been done in view of significant fall in cotton prices in the world market.

The Ethiopian Textile Garment Manufacturers Association (ETGMA) and the Ethiopian Cotton Producers, Ginners, and Exporters Association (ECPGEA) have been informed about the Government's decision to lift the cap on cotton prices.

The Government banned cotton exports in November last year with a promise to cotton cultivators that they will be able to reap price for their produce that was in line with the international price.

The ban was imposed following a rise in demand for the raw material from the domestic textile units alongside a rise in world cotton prices, which spurred a dialogue between the ETGMA, ECPGEA and the Government to work out a solution.

Backed by various Government organizations such as the Ministry of Agriculture (MoA), Ethiopian Textile Industry Institute (ETIDI), Ministry of Industry (MoI) and Ministry of Trade (MoT), the price of cotton was fixed at 42.78 Br per kg for the next three months since November 2010. This price was arrived at after discounting the cost of transport from the then prevailing global prices.

However, the cotton growers were not pleased with such fixing of price, as while the global cotton prices were escalating every month, the cotton growers were being paid on the basis of price prevailing in November. While the world cotton prices rose to about 62 Br in March 2011, cotton growers in Ethiopia were still selling their produce at 42.78 Br per kg.

Hence, at the end of the three-month period, the Government again increased the cap to 57 Br per kg of cotton, as international price then stood at 73 Br. Now, the ceiling on price of cotton has been completely removed, reflecting a downward trend of cotton prices in the international market.

As indicated on Cotlook Index, which shows global cotton prices, the per kg price of cotton, which was at an all time high of US$ 4.9 in March 2011, further plummeted to below US$ 3.6 in June and is currently around US$ 2.5.

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Connor Group

Textiles | On 21st Jun 2018

Protectionism top threat to textile sourcing: William Connor

Protectionism is the biggest political factor and threat affecting...

Courtesy: Tintex

Textiles | On 21st Jun 2018

'Price ratio is key factor for knitted fabrics market'

The price ratio is a key factor for the global knitted fabrics market ...

Leisure sneakers lead US footwear sales: The NPD Group

Apparel/Garments | On 21st Jun 2018

Leisure sneakers lead US footwear sales: The NPD Group

Leisure sneakers dominated US footwear sales between May 2017 and...

Interviews View All

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Urs Stalder
Sanitized AG

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

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


June 2018

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

news category


Related Categories:

Advanced Search