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Cotton importers book 1mn bales from Gujarat
Sep '09
Foreign buyers of cotton who kept away from Indian shores in the previous cotton season, due to the high prices resulting from an increase in Minimum Support Prices (MSP) are once again lining up in Gujarat, the biggest cotton producing state.

According to Mr Arun Dalal, a cotton trader of repute from Ahmedabad, Gujarat, who spoke to Fibre2fashion, said, “Yes up till now almost 1 million cotton bales (1 bale=175 kg) have been booked only from Gujarat state alone”.

“This year we expect 7.5 million bales to be exported from India and the corresponding figure for 2008-2009 cotton year was only 3.5 million bales, while in year 2007-2008 cotton export stood at an awesome 8.9 million bales”, he added by saying.

The main reason in rise in demand for Indian cotton according to Mr Dalal is that, most of the cotton importing countries have cleared off their inventories and with recessionary trends blowing away, India exporters are getting more and more orders from China and Europe.

One other reason forwarded by Mr Dalal is that, China is cultivating less cotton, which is expected to reduce cotton output drastically in that country and to meet its demands; China will have to import more cotton in the current year.

He concluded by saying that Gujarat was the only state in the country which trades in cotton futures, which was one more good reason for buyers to line up on shores of Gujarat to book their future cotton requirements.

Today, in Ahmedabad market, prices of Shankar-6 of 29 mm is ruling at Rs 22,500-22,700 per bale, 28 mm is quoting at Rs 21,800-22,2200 per bale and that of 27 mm is standing at Rs 21,300-21,600 per bale.

Fibre2fashion News Desk - India

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