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 Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Rahuul Jashnani
Jashn

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

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Mohammad Hassan
Biax Fiberfilm

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Pranav Mishra
Huemn

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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
March 2017

March 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