Home / Knowledge / News / Textiles / Rising demand from local firms to impact cotton prices
Rising demand from local firms to impact cotton prices
30
Jul '10
Despite increased harvest this summer, traders are hoping for cotton prices to increase. Shankar-6 variety is being sold at Rs 30,200 per candy as compared to Rs 29,500 a candy, recorded last month.

During the onset of the season, cotton prices registered an upward trend, which by now has come to a stable point, owing to ban on exports. In the domestic market, cotton is being traded in the price range of Rs 30,000-31,000 and traders are hoping for the prices to remain constant till atleast September.

Ban on cotton exports did not impact the prices, as there was a constant rise in the demand from local firms. More than 100 new textile firms have developed in Andhra Pradesh, which has resulted in increased demand for cotton.

Gujarat government, on the other hand, has levies a cess on cotton, which is sold out of state, owing to which cotton prices have surged by around 2 percent. Tamil Nadu, which totals for close to 45 percent of the overall spinning capacity of the nation, is the largest purchaser of Gujarat cotton.

Industry is hoping that, for 2010-11, cotton arrivals will be about 31-32.5 million bales. During 2009-10, arrivals had managed to match the Cotton Advisory Board's anticipated figures of 29.2 million bales. However, cotton arrivals in Tamil Nadu fell behind by 1.8 lakh bales from the earlier estimated figure of 5 lakh bales.

Till the end of June, 5.7 million cotton bales have reached the market in Andhra, of which 1 million bales were exported to countries like Pakistan, Myanmar and China. By September, traders are hoping for additional 1-2 lakh bales to reach the market.

As per traders, the season's good cotton prices will persuade more farmers to grow cotton. More over, cotton quality is also good as many farmers have adopted Bt cotton cultivation, which is more profitable as the crop does not take in more water, thus, helping farmers reduce their input cost, informed a cotton trader.

Although, the yearly local demand in India was fixed at 26 million bales till September 30, this year, the government has allowed exports of 8.523 million bales. Rising prices at the far end of the season, is an indication that the terminals markets are hoarding very less stock, informed an expert.

Hence, averred another expert, government should wait for additional 6-8 weeks to determine the size of the crop and accordingly price trends for the coming season.

Fibre2Fashion News Desk - India


Must ReadView All

Apparel/Garments | On 26th Sep 2017

US raises annual AGOA quota for textiles

The US Committee for the Implementation of Textile Agreements has...

Textiles | On 26th Sep 2017

Thrace-LINQ expanding Dorchester County operations

Thrace-LINQ, a global supplier of fabrics for the textile industry,...

Courtesy: Levis

Fashion | On 26th Sep 2017

Google unveils smart denim jacket with Levi Strauss

Ending the months-long wait, Google has unveiled its smart denim...

Interviews View All

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Rahuul Jashnani
Jashn

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

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Mohammad Hassan
Biax Fiberfilm

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

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Eric Scholler
Groz-Beckert

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

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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

September 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
75.5%
No
12.2%
Skip
12.2%

Total Votes: 49

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
63.3%
No
24.5%
Skip
12.2%

Total Votes: 49

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
87.8%
No
6.1%
Skip
6.1%

Total Votes: 49

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
71.4%
No
10.2%
Skip
18.4%

Total Votes: 49


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