Decision to export cotton strongly condemnable – expert

25 Oct '10

2 min read

A sharp surge in the cotton prices is becoming a cause of concern for the garment and yarn producers for the textile sector in the country and have firmly condemned the Central Government's move of permitting cotton exports to the tune of five and a half million bales (1 bale = 170 kg).

For instance, cotton prices in Punjab have surged to Rs. 3,800 per maund, from Rs. 2,400 to Rs. 2,500 a maund, from a year earlier.

An expert said that, this surge in price is mainly attributable to the government's move of permitting large scale exports of commodity, in spite of its high demand in domestic markets.

Also driven by the optimism in international markets, this year the manufacturing units maintained less stocks as compared to last year. Last year, while they carried forward seven million cotton bales as inventories, this year it just touched four million bales.

Further, floods in Pakistan too have rampaged one third of the cotton cultivation acreage there. Also delay in arrival of crops in the domestic market this year, is the other reason quoted for the price rise.

An expert even said that the rise in price of commodity would certainly have a bearing on the prices of apparels.

Fibre2fashion News Desk - India

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