Home / Knowledge / News / Textiles / MSP hike forces textile firms to increase import
MSP hike forces textile firms to increase import
15
Nov '08
On the back of 40 percent hike in the Minimum Support Price (MSP) for cotton, and drastic fall in the international prices, Indian textile companies have started procuring cotton from neighbouring countries as well as from Argentina, Brazil and the US among others.

Last year, in the month of November, cotton prices stood at around Rs19,700 to Rs20,000 per candy while in this fiscal, due to rise in MSP, it is Rs21,800 to Rs22,000 per candy. Thus, the present scenario, importing cotton has become a feasible option for textile manufacturers.

In this context, Mr Arun Dalal, owner of an Ahmedabad-based leading cotton trading firm Arun Dalal and Co told to Fibre2fashion, “This year, export will not be as per expected whereas import will continue to rise. Big players like Vardhman, Arvind Mills, and Rajpal & Group, are importing cotton from the international sellers.”

Mr Dalal, further reiterated, “Apart from high domestic cotton prices, Indian textile industry is burdened with several other factors like irregular power supply.

“However, we can say, Government is supporting the farmers by buying cotton from them. Cotton Corporation of India (CCI) has already procured around 0.7 million bales of cotton out of total produce of 4 million.”

While reasoning the sudden rise in the imports of cotton, Mr Ashish Shah, Managing Director, Arvee Denim, said, “Because the MSP has been increased by over 40 percent, the prices of cotton in India are not falling. There is a disparity in the prices at which the ginner is buying kapus and the price he is getting in the market. Now, with this, ginners are making losses. International cotton prices have fallen drastically and New York December future is at 40 cents hence there are no possibilities of exports of cotton from India unless the prices Indian cotton Shankar 6 variety falls below Rs19000 per candy.”

In the current year, Arvee Denim has imported around 15000 bales of cotton mostly from USA.

Discussing about the current situation, Managing Director, Arvee Denim said, “If government doesn't do anything on MSP, then ginners will not be able to run their gins and make huge losses or else CCI or Maharashtra federation will have to bear the losses.”

“Textile industry as a whole was already hurt before recession started because of high cotton prices last year, high power cost and high chemical costs, government of India must come up with some package for the industry”, opines Mr Shah.

Fibre2fashion News Desk - India

Must ReadView All

President Tsai Ing-wen delivering remarks before boarding her plane bound for Central America. Courtesy: Presdient's office

Textiles | On 16th Jan 2017

‘Textiles at centre of Taiwan’s new trade arrangements’

Textiles should be at the heart of Taiwan’s thinking while developing ...

Apparel/Garments | On 16th Jan 2017

Ralph Lauren develops policy on tracking wood based fabrics

In a bid to trace source of wood based fabrics like viscose and rayon ...

Apparel/Garments | On 16th Jan 2017

EC proposes enhanced market access for Sri Lanka

The European Commission (EC) has proposed that a significant part of...

Interviews View All

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Steve Cole
Xerium Technologies

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

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

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 ...

Tony Ward
Tony Ward

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

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
January 2017

January 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