Home / Knowledge / News / Textiles / Cotton prices in India may decline next season: Report
Cotton prices in India may decline next season: Report
03
Jan '14
Post cotton season 2013-14, cotton prices in India are likely to decrease as demand slumps, says the latest DHL India Trade Outlook.
 
The report says China is likely to discontinue its policy of procuring cotton at a minimum support price that is higher than the prevailing global average, thereby affecting India's yarn exports, which will translate into lower demand for cotton yarn, and hence cotton.
 
In the previous cotton season 2012-13 that ended on September 30, 2013, domestic cotton prices in India averaged Rs. 107 per kg, nearly 6 percent higher than the previous season’s average.
 
“This increase was on account of a sharp rise in prices towards the end of the cotton season. Prices, which averaged Rs. 100 per kg during the first eight months, rose above Rs. 120 over the subsequent 4 months. The continuing robust demand coinciding with low stocks during the season-end pushed up prices,” states the report.
 
CRISIL Research expects domestic cotton prices to rise to Rs. 115-120 per kg in the current season, as strong yarn demand leads to cotton consumption exceeding production levels.
 
During the ongoing cotton season, India's cotton production is projected to increase by 5-7 percent, mainly driven by higher productivity. Average yield levels, which fell in 2012 on the back of erratic rains, are expected to improve as the monsoon in 2013 has been good and timely, according to the report.
 
It expects cotton mill consumption to increase by 9-10 percent, on the back of continuing strong demand for cotton yarn, which will reduce the stock-to-use ratio to a decadal low.
 
Among key developments, the December 2013 report points out that the Cotton Corporation of India will open 91 purchasing centres in Andhra Pradesh for the 2013-14 season. These centres will buy cotton damaged in the recent cyclones and floods, besides procuring cotton from other parts of the state.
 
Another key point is that textile manufacturers are looking forward to sourcing cotton at lower rates and passing on the benefit to buyers, as the Cotton Association of India has pegged India’s cotton production to rise to 38 million bales this year.
 

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 23rd Jun 2017

Alfredo Grassi to develop graphene-enhanced workwear

Alfredo Grassi, manufacturer of customised protective clothing,...

Textiles | On 22nd Jun 2017

Zund unveils cradle feeder roll-feed system for fabrics

Zund Systemtechnik AG, Switzerland’s textile machinery firm that...

Courtesy: Napapijri

Apparel/Garments | On 22nd Jun 2017

Napapijri's Superlight Parka is free of fur and down

Napapijri has introduced the new Superlight Parka, a new lightweight...

Interviews View All

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Abhishek Ganguly
Puma India

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

Ashok Desai
Bombay Textile Research Association

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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:
June 2017

June 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