Interviews
Weak Intl cotton market dampens domestic demand & exports
30 May '08
2 min read
Domestic cotton market and Gujarat in particular has been showing a downtrend in terms of demand which can be considered as a repercussion of slowdown in international cotton trading.
International market prices are down by 3 cent per pound resulting in a fall of Rs2,000 per bale in domestic market. This in turn has stagnated cotton exports from India and has also affected local consumption.
Although demand is weak, cotton arrival in the market is also slowing down and if the present situation continues, there is all the likeliness for the country to make forward contracts for African Cotton.
Mr Kishore Shah, Secretary, Central Gujarat Cotton Association, told Fibre2fashion, “Domestic market is almost steady with prices for Shanker- 6 ranging between 24,500 to 24,700 bales per candy. However, demand is low from domestic mills because international market is weak and in these circumstances, imported West African Cotton quotes look quite attractive.”
Mr Kishore also informed, “As per Indo-African agreement, Government had declared that if imports are made from any of the 50 weak countries, import duties for such exchange will be withdrawn. This measure will be very beneficial for the country, but so far, no notification has been received from the authorities.”
Importing cotton from Africa, which is comparatively cheaper than the Indian variety if exempted of import duties, will tremendously help the textile industry especially manufacturers and dealers since prices are most likely to mount up again.
International market prices are down by 3 cent per pound resulting in a fall of Rs2,000 per bale in domestic market. This in turn has stagnated cotton exports from India and has also affected local consumption.
Although demand is weak, cotton arrival in the market is also slowing down and if the present situation continues, there is all the likeliness for the country to make forward contracts for African Cotton.
Mr Kishore Shah, Secretary, Central Gujarat Cotton Association, told Fibre2fashion, “Domestic market is almost steady with prices for Shanker- 6 ranging between 24,500 to 24,700 bales per candy. However, demand is low from domestic mills because international market is weak and in these circumstances, imported West African Cotton quotes look quite attractive.”
Mr Kishore also informed, “As per Indo-African agreement, Government had declared that if imports are made from any of the 50 weak countries, import duties for such exchange will be withdrawn. This measure will be very beneficial for the country, but so far, no notification has been received from the authorities.”
Importing cotton from Africa, which is comparatively cheaper than the Indian variety if exempted of import duties, will tremendously help the textile industry especially manufacturers and dealers since prices are most likely to mount up again.
Fibre2fashion News Desk - India
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