Home / Knowledge / News / Textiles / Cotton prices boom, effects are seen in loom
Cotton prices boom, effects are seen in loom
01
Jul '08
Spinning mills across the country are reeling under the burgeoning pressure of rising rupee and unreasonably high prices of cotton which rose by 30 percent in the past few months thrusting the industry into a pitfall.

Cotton prices which started escalating since 2007 are taking a toll on the textile industry which consumed about 241 lakh bales of cotton last season, and is finding it difficult to meet its ends now. Prices of Shankar 6 variety in particular has risen from Rs18,000 per candy in 2007 to as much as Rs27,000 early this week.

While on the one hand the cost of production increased by 17 percent, on the other, yarn prices rose by a petty 2 percent. Moreover, demand for domestic yarn from Korea, Vietnam, Egypt, Mauritius and Bangladesh has also reduced considerably resulting in losses for mills and making it impossible for them to run operations for the entire week.

As a consequence, a good number of mills in Tamil Nadu had to cut down on production capacity while leading garment producers like Arvind Mills and Aarvee Denims have been under-utilizing their capacities for the last six months. Others like Ahmedabad based Gujarat Ambuja Exports Limited (GAEL) and Soma Textiles and Industries Limited have reduced their working days to mitigate losses.

In an exclusive interview with Fibre2fashion, Mr P G Makhija, Executive Director of GAEL said, “Non-availability of cotton at affordable rates have forced the company to reduce their working hours of its Himmatnagar cotton yarn unit to six days.”

When asked what they expected from the Government, Mr Makhija asserted, “Cotton exports must be banned and that Government should prevent hoarding of raw cotton to overcome crisis in the domestic cotton market.”

Southern India Mills Association (SIMA), which also reduced its labor hour by 10 to 15 percent, shared similar opinion and reiterated, “We have demanded from the Government immediate suspension of cotton exports till December 31 2008 and remove import duty of 10 percent and Special CVD of 4 percent on import of cotton with immediate effect. We also hope that the authorities would ensure at least 40 percent stock ratio for use and allow cotton export on a quarterly basis, channelising the same through CCI. Banning of futures trading in cotton to avoid speculation and removal of 1 percent incentive offered for export of cotton are some other proposals we have put forward. If the Government fails to take these measures immediately, the situation will worsen and the entire textile industry would come to a grinding halt very soon.”


Must ReadView All

EU, Japan finalise Economic Partnership Agreement

Textiles | On 18th Dec 2017

EU, Japan finalise Economic Partnership Agreement

Building on the political agreement reached in principle during the...

WTO, ITC launch cotton portal to enhance transparency

Textiles | On 18th Dec 2017

WTO, ITC launch cotton portal to enhance transparency

The World Trade Organisation (WTO) and the International Trade Centre ...

India much behind China in containerised cargo capacity

Textiles | On 18th Dec 2017

India much behind China in containerised cargo capacity

India’s total containerised cargo capacity of 8.75 million...

Interviews View All

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Mohammad Hassan
Biax Fiberfilm

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

Steve Cole
Xerium Technologies

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

Mark Paterson
Technical Absorbents Ltd

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

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
9.6%
Skip
3.2%

Total Votes: 94

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search