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Cotton prices to soar with high global demand
23 Feb '11
2 min read
Strong demand in the global market is likely to boost the cotton prices in the domestic market.
This year, owing to the climatic adversities in some of the world's leading cotton producing countries like Bangladesh, China, India and Pakistan, the global lint production remained low than usual, and this has created a gap in the global demand and supply of cotton.
As indicated on the Cotlook A Index (International Cotton Industry weekly newsletter), the cotton lint prices have soared from last year's 78 cents per pound to two US dollar per pound, this year.
Further, a preliminary analysis reveals that, the country's total acreage for the current year may be around 450,000 hectares, which is above the last season's 350,000 hectares with a crop size of 268,000 tons.
The cotton production for the 2010 year is likely to touch 260,000 tons, up from 2009's 211,000 tons.
Also that, the promulgation of Statutory Instrument 142 of 2010 that secures the interests of the cotton cultivators as well as the buyers, by disallowing side sales, too has raised the trust in the sector, owing to which the contractors who had exited the sector in 2009 have revisited the sector while hiring higher number of farmers.
The cotton output for the 2011 is anticipated to witness a further rise of three lakh tons.
This year, owing to the climatic adversities in some of the world's leading cotton producing countries like Bangladesh, China, India and Pakistan, the global lint production remained low than usual, and this has created a gap in the global demand and supply of cotton.
As indicated on the Cotlook A Index (International Cotton Industry weekly newsletter), the cotton lint prices have soared from last year's 78 cents per pound to two US dollar per pound, this year.
Further, a preliminary analysis reveals that, the country's total acreage for the current year may be around 450,000 hectares, which is above the last season's 350,000 hectares with a crop size of 268,000 tons.
The cotton production for the 2010 year is likely to touch 260,000 tons, up from 2009's 211,000 tons.
Also that, the promulgation of Statutory Instrument 142 of 2010 that secures the interests of the cotton cultivators as well as the buyers, by disallowing side sales, too has raised the trust in the sector, owing to which the contractors who had exited the sector in 2009 have revisited the sector while hiring higher number of farmers.
The cotton output for the 2011 is anticipated to witness a further rise of three lakh tons.
Fibre2fashion News Desk - India
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