Home / Knowledge / News / Textiles / Indian textile sector agitated over rising cotton prices
Indian textile sector agitated over rising cotton prices
08
Mar '13
Indian cotton prices which began surging from the first week of February 2013 are still gaining momentum and scaled news high’s on March 6, in the new cotton season beginning October 2012. 
 
After being stable and moving in a narrow range since October 2012, Shankar-6 cotton prices have shot up in a matter of 30 days from Rs 34,000 per candy on February 5 to Rs 37,925 per candy on March 7, up 11.54%. 
 
This has led to a furore in the Indian textile sector which had witnessed utmost stability in the last few months, mainly due to steady cotton prices. Most of the experts fibre2fashion spoke to, blame the abnormal surge in cotton export registrations in February. 
 
“The main reason for the surge is that cotton export registrations which stood around 3.5-4 million bales between October and January 2013, touched around 8 million bales by February-end,” Dr Selvaraju – Secretary General of South Indian Mills Association (SIMA) told fibre2fashion.
 
“Last year also the same thing had happened. Cotton export registrations which had stood at 5.5-6.0 million bales from October 2011 till January 2012, shot up to around 11.5-12 million bales between February and March 2012,” he explained. 
 
Mr Arumugam, Chairman – Confederation of Indian Textile Industry (CITI) blames the artificial shortage of cotton created partly due to hoarding by traders and partly by non-release of cotton by Cotton Corporation of India (CCI) and other procurement agencies.
 
Mr. Paritosh Agarwal – MD of Hyderabad-based Suryalakshmi Cotton Mills Ltd, says, “Prices have risen even by around 15% for a few other Indian cotton varieties in the course of the last one month. An extraordinary increase in cotton exports is the main reason for the hike in cotton prices.”
 
“Secondly, despite the 10-15 percent hike in cotton prices, the Indian textile industry has still not absorbed it, as we have still not been able to raise the prices of yarns or fabrics in the same proportion,” he informed.
 
Mr Arumugam points out that, nearly 2.5 million bales have been procured by state agencies in the last few weeks. Releasing these quantities now, can fetch an impressive profit for these agencies. 
 
“CCI should immediately release the stocks. Holding on to the procured cotton would only help traders who have also hoarding cotton, purchased from the farmers earlier at low prices,” he said. 
 
“The events of the past one month have created instability in the Indian textile industry, so CCI should immediately start selling its stocks only to actual users, that too, in a restricted quantity to avoid speculation, by these users,” Dr Selvaraju said.
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 17th Jan 2017

GST rollout from July 1; states to control small taxpayers

The Centre and states have reached a consensus on the issue of dual...

Textiles | On 17th Jan 2017

Reliance Industries net increases 3.6% in Q3FY17

In the three months ended December 31, 2016, India’s biggest private...

Courtesy: Carnegie Fabrics

Textiles | On 17th Jan 2017

Calera Capital acquires majority stake in Carnegie Fabrics

Private equity firm Calera Capital has bought a majority stake in...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Johan Berlin
InvestKonsult Sweden AB

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mike Hoffman
Gildan Activewear SRL

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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