Big brother's entry expected to stabilise cotton prices

12 Oct '10

1 min read

Amidst threat of low cotton production this year, the Cotton Corporation of India (CCI) is geared up to purchase cotton from Punjab and Haryana within a week's time. The move is seen to restrain the broad differences in crop prices.

As both the states are seeing lesser quantity of cotton hitting the market this year due to high level of humidity, still the spinning units from North are keeping away from making bulk purchases for stock piling for reason of high prices.

During last season, whereas around 300,000 bales of cotton had hit the Punjab and Haryana markets by this time, in this season hardly 122,000 bales have entered the markets till date.

CCI, a nodal agency of Ministry of Textiles, though is yet not certain as to what quantity of crop it would be purchasing from Punjab, but is considering buying 100,000 bales of cotton from Haryana, this season.

CCI's penetration in the market is seen to stabilize the widely varying cotton prices, each day.

Blaming the govt for permitting cotton export which has escalated price of cotton, spinning units in the two states, have stopped buying in big lots.

Fibre2fashion News Desk - India

More Textiles News - India...