Home / Knowledge / News / Textiles / Indian cotton farmers and ginners hold on to inventories
Indian cotton farmers and ginners hold on to inventories
13
Jan '14
In the week ending January 11, 2014, farmers and ginners in India held to their cotton without any fear of downtrend, says a weekly report on cotton market trends released by S. Ajay Kumar & Company.
 
During the week, cotton market in India experienced a lot of resistance from foreign futures and strong rupee, and ginners held on to their inventories, according to the report.
 
At the close of the week, farmers held 10 million bales of raw material while ginners had another 2.5 million bales either in raw form or in fully pressed form.
 
At the start of the week, the price of Shankar 6 variety of cotton was Rs. 40,500 per candy of 355.6 kg each, while the price at the close of the week increased to Rs. 42,000 per candy.
 
During the week, the Indian rupee became stronger compared to the US dollar, and both Indian futures and physical prices rallied showing bullish trend.
 
“It shows strength and holding power of Indian farmers and ginners,” the report states and adds that “It is a lesson for the industry not to under estimate strength of united Indian cotton growers.”
 
Analyzing the prices, the report says that Indian cotton is overvalued due to strong mood of farmers. At present, the price of Indian cotton is greater than the price of African cotton and equal to the US cotton.
 
In such a situation, it is not viable for Indian cotton traders to compete in international market. Moreover, Indian rupee is appreciating. So, it would be more viable for Indian spinners to import cotton rather than buying domestic cotton.
 
Technically, New York Board of Trade (NYBOT), a physical commodity futures exchange, is on down swing, so imported cotton is expected to become cheaper in the ongoing week ending January 18, 2014.
 
Although the Indian cotton market rallied for short-time, the report predicts strong resistance in the market and again it will touch Rs. 40,000 per candy level.
 

Fibre2fashion News Desk - India


Interviews View All

Nitin Soni, Dolphin Jingwei Machines

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Jurgen Gauger, Spreadshirt

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Awen Delaval, Samatoa

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Teresa Neal,

Teresa Neal

Teresa Neal, an art professional with 25 years of experience, in...

C Dhandayuthapani,

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Alphonse Reddy,

Alphonse Reddy

Bangalore-based Sunday designs and makes mattresses and accessories that...

Ray Baughman, University of Texas -Dallas

Ray Baughman
University of Texas -Dallas

<div>A team of scientists and researchers have discovered twistrons,...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Joe Ikareth, Joe Ikareth

Joe Ikareth
Joe Ikareth

<b>Joe Ikareth</b> has a rock-solid fashion and textiles background, which ...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


November 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search