Home / Knowledge / News / Textiles / 'India cotton prices will crash' - Gujarat ginners
'India cotton prices will crash' - Gujarat ginners
06
Mar '12
Indian raw cotton prices will crash and those in overseas markets will rise, is the general reaction of cotton traders and ginners based in Gujarat, which exports the highest amount of the white gold from the country.

Yesterday, the Indian government had banned the export of raw cotton with immediate effect, without assigning any reasons. It has also banned exports of those who have registered their export contracts but have still not shipped their goods.

“Cotton prices in India will crash and those in global markets will become stronger”, Mr Anand Popat – Secretary of Saurashtra Cotton Ginners Association told fibre2fashion.

“This decision will affect cotton farmers the most. As per my estimate, ginners are not carrying much inventories. It is the farmers who still have large volumes of unsold cotton”, said, Mr Paresh Valia of Asha Cotton Industries.

The immediate impact was felt on prices of Shankar-6 quality of raw cotton and the highest exported quality of cotton from India.

Prices of Shankar-6 crashed 4.93 percent from its previous day on March 5 to Rs 33,300 per candy (1 candy = 355 kg) following the announcement of the ban on cotton exports.

“In the new season, 12 million bales (1 bale = 170 kg) have already been registered for export, of which around 8.5 to 9 million bales have already been shipped. Secondly there are around 12 million and 5 million bales lying unsold with farmers and ginners, respectively, Mr Popat added.

“I also expect those who have already registered contracts, but have still not exported, to approach courts for redress”, Mr Popat informed.

Mr Paresh Valia is also of the opinion that the government should have at least allowed those holding contracts to export and should have stopped new registrations. Alternatively, they could have also given a time limit for permitting exports, rather than bringing the policy into effect immediately.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Textiles | On 20th Jan 2017

Xeros to focus on textile sector to develop technology

Xeros technology group plc, the developer and provider of patented...

Apparel/Garments | On 20th Jan 2017

Nine West acquiring womenswear marketer Kasper Group

US based footwear, accessories and denim company Nine West Holdings...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Urs Stalder
Sanitized AG

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Mohammad Hassan
Biax Fiberfilm

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search