Home / Knowledge / News / Textiles / Export deliveries impacting cotton prices - experts
Export deliveries impacting cotton prices - experts
07
Nov '09
Since mid-October domestic as well as export prices of cotton in Gujarat, which is the biggest producer of cotton in India are on fire. The first price rise came in the festive season of Deepawali, when cotton traders shut down their business for a few days.

In that period between October 16 and October 24 prices of a cotton candy (1 candy=355 kg) flared up from 23,200 per candy to Rs 24,200 on October 26, a hike of Rs 1,000 in a matter of just 10 days.

Prices of cotton have once again scaled up after that and touched Rs 24,700 per candy on November 4. To get behind the reasons of the bullish trends of cotton, fibre2fashion took the initiative to speak to a few cotton traders of repute in Gujarat.

First we spoke to Mr Hiren Patel of Patel Ginning Pressing Pvt. Ltd. in Botad, who said, “There is less availability of the cotton crop due to deficient rainfall in this season and as Gujarat Kadi Cotton Association had estimated that this season crop will come to around 10 million bales, but the actual figure could be around 6.5 million bales, which means 35 percent less and since exporters had booked cotton on export forward prices, the delivery of the same is being done now”.

Mr Paresh Valia of Asha Cotton Industries, Mahuva was of the opinion that exporters are short covering their positions, they are buying in huge quantities, since shipments begin in the month of November and the cotton arrivals in the market is only 40,000-45,000 candies daily against an estimated arrival of 80,000 candies per day and cotton production is estimated to be low this year, which has led to a spurt in cotton seed prices, which is also one of the reasons for the flare up in prices of cotton.

Mr. Jadavbhai of C. K. Industries, Rajkot was of also the firm view that November is the time when shipments to overseas markets begin for consignments booked under futures contracts in previous months and also because the cotton crop is expected to be less by 25-30 percent in the current cotton season, which are the main reasons for hike in cotton prices.

When asked whether they expect imports of cotton to increase in near term, Mr Patel said that he does not expect so, as currently they are exporting 450 Bales per day as well as from all over the Botad, the daily figure is around 2,000 bales, while Mr Valia said imports would not increase, because production is not only bad in India but outside India as well. In China cotton output is estimated at 60 million bales against a projected 75 million bales and the situation is same in the US.

Click here to view domestic and export price trends.

Fibre2fashion News Desk - India


Must ReadView All

Europe fights against microplastic release from textiles

Textiles | On 18th Jan 2018

Europe fights against microplastic release from textiles

The European Commission, the institution of the European Union, has...

Egypt starts building biggest textile city in Al-Sadat

Textiles | On 18th Jan 2018

Egypt starts building biggest textile city in Al-Sadat

Egypt has started construction of the biggest city for textiles and...

Vietnam targets $20 bn from export of footwear, bags

Apparel/Garments | On 18th Jan 2018

Vietnam targets $20 bn from export of footwear, bags

Vietnam targets to earn around $20 billion from the export of...

Interviews View All

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Urmil Arya

Sushila International, a well established textile organisation established ...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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 2018

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

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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

Yes No

Active Poll

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

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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

Active Poll

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

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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