Home / Knowledge / News / Textiles / Indian cotton farmers and ginners hold on to inventories
Indian cotton farmers and ginners hold on to inventories
13
Jan '14
In the week ending January 11, 2014, farmers and ginners in India held to their cotton without any fear of downtrend, says a weekly report on cotton market trends released by S. Ajay Kumar & Company.
 
During the week, cotton market in India experienced a lot of resistance from foreign futures and strong rupee, and ginners held on to their inventories, according to the report.
 
At the close of the week, farmers held 10 million bales of raw material while ginners had another 2.5 million bales either in raw form or in fully pressed form.
 
At the start of the week, the price of Shankar 6 variety of cotton was Rs. 40,500 per candy of 355.6 kg each, while the price at the close of the week increased to Rs. 42,000 per candy.
 
During the week, the Indian rupee became stronger compared to the US dollar, and both Indian futures and physical prices rallied showing bullish trend.
 
“It shows strength and holding power of Indian farmers and ginners,” the report states and adds that “It is a lesson for the industry not to under estimate strength of united Indian cotton growers.”
 
Analyzing the prices, the report says that Indian cotton is overvalued due to strong mood of farmers. At present, the price of Indian cotton is greater than the price of African cotton and equal to the US cotton.
 
In such a situation, it is not viable for Indian cotton traders to compete in international market. Moreover, Indian rupee is appreciating. So, it would be more viable for Indian spinners to import cotton rather than buying domestic cotton.
 
Technically, New York Board of Trade (NYBOT), a physical commodity futures exchange, is on down swing, so imported cotton is expected to become cheaper in the ongoing week ending January 18, 2014.
 
Although the Indian cotton market rallied for short-time, the report predicts strong resistance in the market and again it will touch Rs. 40,000 per candy level.
 

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Manfred Mentges
Sedo Treepoint GmbH

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Silke Brand-Kirsch
Schlegel und Partner

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

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Rupa Sood and Sharan Apparao
Nayaab

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

Tony Ward
Tony Ward

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

Ritu Kumar
Label Ritu Kumar

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

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