Home / Knowledge / News / Textiles / Indian farmers holding back stock as cotton price falls
Indian farmers holding back stock as cotton price falls
21
Nov '11
In the midst of a fall in cotton prices, cultivators in India are holding back their crop and are waiting to sell at better prices.

Last month, cotton arrivals in the country were 1.48 million bales (1 bale = 170 kg) as against the arrival of 2.1 million bales during October 2010. This is so even as a record production of 35.5 million bales is projected this year compared to 32.5 million bales last year.

The price of the benchmark Shakar-6 variety of cotton has currently decreased to Rs. 37,500 a candy (1 candy = 356 kg) from Rs. 39,600 a candy earlier this month. This is causing the farmers to hold back their stock in anticipation of getting higher price. In February 2011, the price had gone up to Rs. 63,000 a candy.

Speaking to fibre2fashion, Mr. Paresh Valia, Director of Asha Cotton Industries, said, “The farmers are hoarding the stock as they consider the current rates to be very low. They are not ready to sell the stock at lower prices.”

“However, prices are not expected to increase soon. In fact, it seems that the market will see a downward trend. As per my estimate, the price of cotton in December will be close to around Rs. 35,000 a candy. Moreover, the demand for cotton has shifted from India to Pakistan due to lower rates there,” he reasoned.

Explaining the logic behind the expected decrease in the price of cotton, he said, “This year the monsoon is late by about a month. Accordingly, the sowing was also done late by a month. The supply of cotton that is coming right now is actually from the sowing that was done in areas with irrigation facilities in the end of April or in the first week of May. But, the crop that is reaped using rainwater is late by a month due to delay in rains. Hence, the stocks will pick up from the end of November or may be from the beginning of December, leading to a further fall in price.”

Making a cost-benefit analysis for the farmer, Asha Cotton's Director said, “Actually, the cotton that is arriving right now is moisture laden. The farmer cannot hold back this cotton as it will turn yellow if stocked for long. Hence, the farmer has to sell this cotton at the existing market rate. The costing to the farmers is around Rs. 300 per maund (1 maund = 20 kg). So, as it is they are getting three times their cost price. Thus, it is only their greed that is making them hoard their cotton stocks.”

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: SGS

Textiles | On 1st May 2017

SGS develops test for microfibre in laundering

SGS Global Softlines has developed a new testing service to assess...

Textiles | On 1st May 2017

FESPA to showcase digital, screen, textile industries

Stage is set for FESPA 2017 at the Hamburg Messe, Germany during May...

Courtesy: Copenhagen Fashion Summit

Textiles | On 1st May 2017

Copenhagen Summit to focus on commitment to change

Copenhagen Fashion Summit 2017, a business forum on sustainable...

Interviews View All

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Mohammad Hassan
Biax Fiberfilm

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

Robert Brunner
Devereux

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X