Home / Knowledge / News / Textiles / Rising demand from local firms to impact cotton prices
Rising demand from local firms to impact cotton prices
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

Courtesy: Christian Dior

Fashion | On 25th Apr 2017

LVMH to acquire Christian Dior Couture for €6.5bn

LVMH and Christian Dior, which holds directly and indirectly 41 per...

Apparel/Garments | On 25th Apr 2017

Walmart's Project Gigaton to help reduce emissions

Walmart has launched a sustainability platform called Project Gigaton ...

Courtesy: Arvind

Fashion | On 25th Apr 2017

The Arvind Store launches ready-to-wear brand for men

The Arvind Store has announced the launch of its own ready-to-wear...

Interviews View All

Nuno Venda

‘There has been an increase in demand for water based inks, rather than...

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Lynda Kelly
Suominen Corporation

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

Kerem Durdag
Biovation II LLC

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

Jay Ramrakhiani
Occasions Elegance Wear

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

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


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