Home / Knowledge / News / Textiles / Cotton prices to rule firm: Experts' Say
Cotton prices to rule firm: Experts' Say
30
Aug '10
Cotton market – the white gold market of our industry is known for price volatility. Industry experts and current market sentiments opine the Cotton Prices to remain high this year. Not to mention- it isn't just a guess work! Rather, a set of factors determining this behavior of one of industry's basics raw material market for the year through.

To locate these determinants, our News team at Fibre2fashion arranged for a few colloquies with dab hands in this field.

Mr Terry Townsend, Executive Director, International Cotton Advisory Committee (ICAC), revealing the internal and external factors to price rise, said –“Stocks of cotton held around the world fell from 12 million metric tons at the end of July 2009 to an estimated 9.5 million tons at the end of July 2010. In addition, the world economy improved much faster than had been expected in early 2009, and demand for cotton products rose by more than 4% to 24.5 million tons in 2009/10. Furthermore, the strong growth in consumption is continuing during 2010/11, and world cotton stocks will tighten further this season. The momentum from the stronger cotton fundamentals during 2009/10, combined with continued growth in cotton consumption in 2010/11, is leading to higher cotton prices. “

Mr Townsend also highlighted the resultant movements of rising cotton prices. He described that there would be increased production and slower growth in consumption. Farmers will be encouraged to harvest all the cotton that is grown in 2010/11, even the latest-opening bolls, resulting in a rise in cotton yields because of increased harvesting efficiency. He also envisages that during 2011/12, governments and cotton companies will devote additional resources to providing cotton farmers with inputs, resulting in increased area and production a year from now.

Meanwhile, textile mills will increase their efforts to substitute polyester for cotton. “Consequently, world cotton production is likely to exceed 26 million tons by 2011/12, while consumption will probably rise to less than that amount, and prices will eventually correct,” avers the ICAC Director.

Further, Mr Townsend also expressed his dissatisfaction on government intervention and trade policies introduced in recent past. He spoke-”Recent developments in trade policies in response to commodity shortages have been worrisome. Just in 2010, governments have interrupted trade in cotton, cotton yarn and grains, setting precedents for further interventions in commodity markets in the future.”

He feels that, self-evidently, those policies interrupting commodity exports or imports result in immediate losses among trade partners. Distortions to trade in cotton harm the interests of cotton producers in all countries as reliable suppliers of raw material to textile industries, thus encouraging increased use of polyester by textile mills. Disruptions to trade have the effect of increasing price volatility in commodity markets.


Must ReadView All

Israeli minister announces tax cuts on consumer goods

Apparel/Garments | On 14th Dec 2017

Israeli minister announces tax cuts on consumer goods

The Israeli Government will slash taxes by $227 million, finance...

Courtesy: Kelvin Techstyles

Apparel/Garments | On 14th Dec 2017

Kelvin Techstyles fuses style and function in city apparel

Fusing style and function in outdoor clothing, Roseville,...

India’s WPI inflation for textiles up 0.3% in Nov 2017

Textiles | On 14th Dec 2017

India’s WPI inflation for textiles up 0.3% in Nov 2017

India’s annual rate of inflation, based on monthly wholesale price...

Interviews View All

Top executives
Textile industry

The foremost issue is bridging the skill gap

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Larry L Kinn
Suominen Corporation

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

Nisha Chanda
Whistling Woods International School of Fashion

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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

December 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
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

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
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

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
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

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
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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