Home / Knowledge / News / Textiles / Cotton prices to rule firm: Experts' Say
Cotton prices to rule firm: Experts' Say
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

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Nuno Venda

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

Jurgen Gauger

‘Buying crowdsourced or creative designs are much more appealing to the...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Ashok Desai
Bombay Textile Research Association

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

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Wendell Rodricks
Wendell Rodricks

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

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


Letter To Editor

(Max. 8000 char.)

Search Companies

January 2017

January 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search