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Indian cotton prices to soar on increased buying
19 Jul '12
1 min read
Indian textile and yarn mills have increased their cotton purchases over the past few weeks, which is expected to lead to a further rise in cotton prices.
The benchmark Shankar-6 variety of cotton was quoted at Rs. 36,500 to Rs. 37,500 per candy of 356 kg in Rajkot market, which is an 8-10 percent higher than previous week’s prices.
The increase in prices is due to a surge in demand for ginned cotton as textile and yarn mills from north, south and central India have began buying cotton. Traders are expecting the prices to rise further by 5-10 percent in the coming days.
Experts foresee a cotton shortage in the Indian domestic market, as more than 11.5 million bales from the country’s total produce has already been shipped out till date.
Industry analysts say, Indian textile and yarn firms are now importing extra-long staple cotton varieties from Egypt and the US, medium-staple varieties from Africa and Central Asian countries and coarse varieties from Pakistan.
The preference is mainly because such imports not only give them a cost benefit of 4-5 percent over domestic purchases, but also the imported cotton is of superior quality.
Fibre2fashion News Desk - India
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