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 25th Sep 2017

SVP Group to build $300 mn spinning plant in Sohar

ShriVallabh Pittie Industries (SVP) Group, a diversified yarn...

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Courtesy: Business Wire

Textiles | On 25th Sep 2017

Invista to use ADN technology at joint project in France

Invista, a leading producer of chemical intermediates, polymers, and...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Abhishek Ganguly
Puma India

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

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Johan Berlin
InvestKonsult Sweden AB

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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