Prices of the most exported Indian variety of long staple raw cotton, Shankar–6 have been on a downhill ever since beginning of November.
Prices of Shankar-6 cotton have slid from Rs 39,700 per candy (1 candy = 356 kg) on November 1 to Rs 34,625 yesterday, down a massive 12.78 percent in a matter of just 45 days.
Around same period last year, prices of raw cotton had started climbing and reached a peak of Rs 65,000 per candy in March 2011, before plunging, April onwards.
Indian textile mills stung by the volatility in cotton prices in the first half of current year and which lost heavily after cotton prices started falling, are now operating on a hand-to-mouth existence.
This has resulted in sluggish demand, as mills are purchasing cotton on a need only basis. Secondly there are expectations of a bumper cotton harvest in the current season. Both these reasons, are mainly affecting prices of the white gold.
In a recent exclusive interview to fibre2fashion, Mr. Anand Popat, Secretary of Saurashtra Ginners Association had conveyed apprehensions that price could fall to as low as Rs 32,000 per candy.
He had said, “Global as well as domestic demand is low. Moreover, this season, we are expecting a bumper cotton harvest, estimated to be over 34 million bales (1 bale = 170 kg) against 32 million bales in the previous season. So it is quite obvious that prices will fall.”
Click here to view Shankar-6 price trends.
Fibre2fashion News Desk - India
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