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Indian cotton prices expected to rise further
22 Oct '10
2 min read
Indian cotton prices are expected to register a hike after 15th December following the influx of fresh cotton regardless of the fluctuations in international cotton prices.
According to the traders, the cotton prices could increase up to Rs 43,000 per candy, which is equivalent to 356 kgs, since fresh cotton influx particularly in November is anticipated to be restricted as a result of the exports. High international cotton prices have kept the attitude of the Indian cotton growers and the concerned ministry optimistic.
Applications for the export of 5.5 million bales of cotton have been submitted in the textile commissioner's office.
Trade analysts are of the opinion that cotton prices could fall marginally following the arrival of US and Indian cotton, but they would continue to remain above $1/lb for some months due to the low supply in the global market.
US cotton prices had touched the highest level of $1.198 on ICE Futures US on 15th October ever since the American Civil War.
In the domestic market, the cotton prices are at Rs 41,000 per candy, registering an increase by Rs 1,000 per candy over the weekend as the factories start buying cotton.
27 million bales of cotton are expected to be consumed in the domestic market while the cotton production is projected at 32.5 million bales in 2010-11. In 2009-10, the exports of cotton registered a record of 8.3 million bales, thereby causing the cotton prices to surge in the domestic market.
According to the traders, the cotton prices could increase up to Rs 43,000 per candy, which is equivalent to 356 kgs, since fresh cotton influx particularly in November is anticipated to be restricted as a result of the exports. High international cotton prices have kept the attitude of the Indian cotton growers and the concerned ministry optimistic.
Applications for the export of 5.5 million bales of cotton have been submitted in the textile commissioner's office.
Trade analysts are of the opinion that cotton prices could fall marginally following the arrival of US and Indian cotton, but they would continue to remain above $1/lb for some months due to the low supply in the global market.
US cotton prices had touched the highest level of $1.198 on ICE Futures US on 15th October ever since the American Civil War.
In the domestic market, the cotton prices are at Rs 41,000 per candy, registering an increase by Rs 1,000 per candy over the weekend as the factories start buying cotton.
27 million bales of cotton are expected to be consumed in the domestic market while the cotton production is projected at 32.5 million bales in 2010-11. In 2009-10, the exports of cotton registered a record of 8.3 million bales, thereby causing the cotton prices to surge in the domestic market.
Fibre2fashion News Desk-India
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