Home / Knowledge / News / Textiles / Ginners & weavers upset over hike in cotton prices
Ginners & weavers upset over hike in cotton prices
Apr '08
Government is expected to revise the prices of fibre producing crops, especially, cotton and measures for the same are on the way after complaints made by traders about speculative hoarding and large scale exports.

Although, the finance ministry is in favor of a 5 percent export tax on cotton, the Cabinet Committee on Prices (CCP) has kept the decision on hold for a while.

Being the cheapest available in the international market, Indian cotton has a huge demand overseas.

Some of the largest cotton trading companies in the world, seeking to take advantage of the situation have become active in the Indian market.

Despite a record high production in 2007-08, local prices for cotton remains not only high, but on the contrary it continues to escalate due to enormous demand from exporters.

The key problem for the Indian market is that even though farmers are benefiting by this trend, ginners and weaving mills find it difficult to make purchases at such unreasonably high prices.

However, the CCP, considering that there is still a surplus in the domestic market, has opposed the imposition of export restriction by the Finance Ministry.

On the other hand, the Cotton Association of India (CAI) strongly holds that large international players with access to foreign cash are trying to create instability in the Indian cotton market.

Moreover, market operators having finance at international interest rates are clocking the supply of cotton raw material at various levels to benefit from the trend of rising prices.

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Veronique Lee

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Silvia Venturini Fendi
Fendi s.r.l

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

Tony Ward
Tony Ward

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

October 2016

October 2016

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


Browse Our Archives


Advanced Search