Home / Knowledge / News / Textiles / Indian textile mills panic from steep hike in cotton price
Indian textile mills panic from steep hike in cotton price
Mar '13
Cotton price in India has suddenly and abruptly increased, creating a panicky situation in the spinning sector.
Recently, there have been retaliations by both cotton traders and the spinning industry with regard to the cotton price and supply situation in India. The Southern India Mills Association (SIMA) has strongly demanded release of cotton stocks from the Cotton Corporation of India’s (CCI) inventory. 
In a statement, Mr. S. Dinakaran, Chairman of SIMA has stated that the inventory held by government owned cotton procuring agencies such as CCI and some major traders is the reason for the sharp increase in the cotton price situation. 
Earlier, SIMA had urged the Government of India to intervene and help with the release of stock from the CCI inventory. This plea was strongly criticized by the Cotton Association of India.
Today, the SIMA chairman has stated that, due to lack of government action in the past 15 days, cotton price has increased by Rs 2,500 per candy (USD 46.35/candy) (1 candy = 355 Kgs). 
SIMA has criticized the trading practice by cotton merchants in the last 5 seasons which is resulting in price speculation and artificial scarcity.  Sankar-6 variety is now trading about 95 cents/pound which is higher than the international price. Yesterday, the New York Futures settled at 88.54 cents/pound for the December contract. 
The volatility in the cotton market is closely watched by cotton producers and traders in the United States and elsewhere. In a Plains Cotton Growers, Inc. (PCG) meeting in Lubbock, TX, Steve Verett, Executive Vice President of PCG stated “Price volatility isn't good for people growing or using cotton, and what we're experiencing right now is making both producers and users nervous. We saw the effects of two-dollar cotton on textile mills and we don't need to experience that again." 
A cotton merchant told this scribe in today’s PCG meeting, that this will be another year of price volatility, weather and market uncertainties.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Applied DNA Sciences

Apparel/Garments | On 24th Feb 2017

SigNatureT DNA can help prevent apparel counterfeiting

SigNatureT DNA is forensic molecular tag by Applied DNA Sciences...

Textiles | On 24th Feb 2017

Pakistan's textile exports down 1.54% in July-Jan FY17

The value of textile and garment exports made by Pakistan decreased...

Courtesy: The Irish News/Christian Cowan (Google)

Fashion | On 24th Feb 2017

Google & Christian Cowan create 'really blue' jeans

Google has partnered with British fashion designer Christian Cowan to ...

Interviews View All

Angelina Francesca Cheang

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

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Deepak Jain

We are using Facebook and Instagram to promote ourselves

Urs Stalder
Sanitized AG

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

Steve Cole
Xerium Technologies

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Robert Brunner

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


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

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


Browse Our Archives


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