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India may witness higher carry forward cotton stocks
Jun '11
The current slowdown in demand for the white gold and if the government does not permit additional exports, could mean, higher carry forward stocks in the current cotton season.

In its February estimate, the Cotton Advisory Board (CAB) had estimated a carry forward stock of four million bales (1 bale = 170 kg), against 3.5 million bales in the previous season.

However, the slowdown in demand in the last two fortnights could mean even higher cotton stocks.

A top Cotton Corporation of India (CCI) official confirmed the fact about higher carry forward stocks in the current season, putting forth, the subdue in demand and reduction in consumption by mills, as the main reasons.

He however could not put a finger on the implications of the same on the market. He said, “It is very difficult to predict. Right now, due to slow movement in yarn market, mills are not purchasing cotton, which is also the reason for dip in cotton prices”.

He added, “Going by the over all figures of production and consumption, there should be sufficient cotton for domestic use as well as for exports”.

Speaking about the upcoming season, he informed, “Looking at the condition right now, we do not expect any firmness in the market for a couple of months ahead except, if some quota is announced for export of raw cotton or related to yarn export”.

“Then and then only, can a firmness be visible in the market. However, this is again a prediction”, he wrapped up by saying.

Fibre2fashion News Desk - India

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