Home / Knowledge / News / Textiles / Imports of cotton zoom northwards, exports southwards
Imports of cotton zoom northwards, exports southwards
08
Apr '09
India which had exported around 8 million bales (1 bale=170 kg) in the last cotton season is expected to import 1 million bales in the current and ongoing cotton season. The irony comes from the government decision to increase the Minimum Support Price (MSP) by 25-40 percent.

While global cotton prices had touched four year lows since the unfolding of the economic crisis and the beginning of the new cotton season, Indian cotton prices have moved northwards, thanks to the increase in MSP, which has led to this unprecedented growth in imports.

This has compelled Indian textile mills to import sizeable quantities of cotton from overseas markets, from the US and Pakistan in particular, due to the big price disparity prevailing in the domestic and international markets.

To add to the woes of the cotton textile mills, prices of cotton in the open markets have now started inching past the MSP prices as the state agencies like Cotton Corporation of India (CCI) and Nafed have mopped up a large number of bales from the market.

Experts had predicted an artificial shortage of good fibre length and quality cotton in the markets since most of the good cotton is locked away in the warehouses across India of these two state procurement agencies, who between them are sitting on a stock of 29 million bales.

This has led to 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.

Fibre2fashion spoke to Kishore Shah, President of Central Gujarat Cotton Dealers Association who said that, “Due to increase in MSP prices, exports have become difficult and even at current market prices Shankar-6 variety is costlier by 3 cents, comparable with a US cotton variety”.


Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Stella McCartney, Bolt Threads partner for eco fashion

Fashion designer Stella McCartney has partnered with Bolt Threads for ...

Interviews View All

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Lynda Kelly
Suominen Corporation

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

Eric Scholler
Groz-Beckert

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

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

July 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

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

Yes No

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

Yes No

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


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



X