Home / Knowledge / News / Textiles / SIMA expects 2014-15 cotton closing stocks at 6-7mn bales
SIMA expects 2014-15 cotton closing stocks at 6-7mn bales
08
Jun '15
According to the Southern India Mills’ Association (SIMA), India would have a comfortable closing cotton stock of between 6-7 million bales by the end of the 2014-15 season.

“This would ensure better stability in cotton prices during the current calendar year,” SIMA chairman T Rajkumar said in a statement.

He also added that the country is also expected to have a comfortable cotton supply position during the 2015-16 cotton season and that the cotton market is expected to be stable in the same period.

T Rajkumar further added that this would greatly help the Indian cotton textile industry to leverage export performance particularly in the garment and made-up segments.

He stated that textile mills which used to carry three to six months cotton stock earlier have reduced inventory to just one to two months, mainly due to cotton price volatility.

He was of the opinion that there is an undue delay in getting TUFS subsidy and also exports subsidies during the 2014-15 season, due to which mills could not procure more cotton.

The predominantly cotton based textile industry has been producing almost 75 per cent of the spun yarn from cotton has been subjected to crisis from volatility in prices.

“But during the current cotton season, cotton prices have been comparatively stable due to reduced imports by China and the oversupply position in the global market,” the chairman noted.

As the international cotton prices were ruling lower than Indian prices, CCI had to venture into MSP operations and procured around 8.7 million bales during the 2014-15 cotton season.

“However, CCI’s selling policy not only affected the domestic market to a certain extent, but also made the mills using certain varieties of cotton grown in Telangana and Andhra Pradesh to face shortage of quality cotton as CCI did not release the cotton on time,” he observed.

According to the SIMA chief, with the bleak export demand, the carry over is likely to be around 7 million bales which is the highest cotton stock ever carried by India after 2008-09.

T Rajkumar also noted that though CAB has estimated that 7 million bales of cotton would be exported during current season, so far only around 4.5 million bales have been exported.

The SIMA chairman fears a rumour that the government is again making attempts to have Government to Government (G2G) arrangement to export definite quantity of cotton to countries like China, Thailand, Bangladesh, Pakistan and Vietnam.

He has appealed to the Centre to avoid such a policy and ensure that there is no government interference and leave the cotton market to take care of the supply and demand position. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 27th Mar 2017

NYCEDC announces $51mn package for NYC garment industry

New York City Economic Development Corporation (NYCEDC), in...

Apparel/Garments | On 27th Mar 2017

Fynd raises $500K Series A funding from Venture Catalysts

Fynd, an online to offline (O2O) e-commerce fashion marketplace, has...

Apparel/Garments | On 27th Mar 2017

India's fashion market to touch $30 bn by 2020: Report

The fashion market in India is estimated at $70 billion in 2016, with ...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Mark Paterson
Technical Absorbents Ltd

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

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...

Judy Frater
Somaiya Kala Vidya

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

Bani Batra

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

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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
March 2017

March 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