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North Indian mills line up to purchase cotton from Gujarat
Oct '08
The new cotton season has begun and textile mills of North India have started lining up to stock the newly arrived cotton. Booking of cotton is going on at a brisk pace helped by very good arrivals in the market.

Currently 17000-21000 bales are reaching the market on a daily basis and this is expected to pick up to 70,000 in a month's time.

According to Mr Arun Dalal, a leading cotton trader from Gujarat “Buyers have started purchasing cotton from month of October from Gujarat which includes companies such as Vardhman Mills, Nahar Mills and Abhishek Industries etc.”

He said “North India based textile mills are lining up in Gujarat due to good quality of cotton at very competitive prices compared to those prevailing in Punjab which is also a good cotton producing state in India.” On an average deals to the tune of 20,000-23,000 bales are being sealed daily.

He added by saying that “In Gujarat they can purchase cotton at easy terms while in Punjab they have to cough up cash payment for their purchases.” According to him booking of cotton started at Rupees 23,700 per candy but now it has gone down to Rupees 22,800 per candy.

Cotton production is expected to be around 11.5-12.0 million bales in this new cotton season. The biggest buyer of cotton in India, Cotton Corporation of India is expected to start purchasing cotton from Gujarat, November onwards.

Fibre2fashion News Desk - India

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