Home / Knowledge / News / Textiles / CCI wrings hands in glee as cotton prices surge past MSP
CCI wrings hands in glee as cotton prices surge past MSP
04
Apr '09
The Cotton Corporation of India (CCI), the state owned cotton trading firm and National Agricultural Cooperative Marketing Federation (Nafed) also a state owned entity are sitting on a huge stock of 29 million bales purchased in the just completed cotton season.

With stocks running out from the main cotton trading markets, cotton prices have started surging and have gushed past the Minimum Support Prices (MSP) in the open markets, in a few varieties, in which both the agencies are sitting on huge stocks.

The textile mills who in the last few months were working on a hand to mouth situation on expectations of a bail out package are now approaching CCI to take advantage of the discounts offered by the cotton trading firm on bulk purchases.

But this latent demand is also resulting in a growth in prices of a few varieties of cotton, which are now quoting above MSP levels, notably of the Gujarat grown Shankar-6 variety, which is now priced at Rs 1,500 per ton above the MSP price of 28,500 per ton.

This new development has raised the hopes of CCI which was expecting to lose money on its cotton stored in the warehouses as it was not able to attract prices over and above that of MSP prices and now hopes to make a tidy profit from its stocks.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th May 2017

Huntsman and Clariant to have merger of equals

Huntsman Corporation and Clariant have announced that their boards of ...

Apparel/Garments | On 25th May 2017

AAFA reinforces opposition to Border Adjustment Tax

The American Apparel & Footwear Association (AAFA) has reinforced its ...

Courtesy: CBRE

Apparel/Garments | On 25th May 2017

European cities preferred for retailer expansion: CBRE

European cities were the preferred new destination for international...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mark Paterson
Technical Absorbents Ltd

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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