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Cotton farmers demand remunerative prices

16
Dec '08
The cotton farmers of the country are holding the government and cotton ginning factories responsible for the low rates that are being offered to them for the raw cotton grown in their fields. The current rate offered to them is Rs 1,300 per 40 kg; while they allege that as per the international market conditions it should be at least Rs 1,900 per 40 kg.

In the beginning of the cotton season, prices were ruling at Rs 1,900- 2,000 per 40 kg, but have now slid to the current levels due to the negligence of the government, the farmers contend. They have demanded of the government that it should immediately start purchasing raw cotton from the farmers as they are still holding on to large stocks due to the low prices prevailing in the markets.

Experts are attributing the slide in prices to the low global cotton prices prevailing in the international markets and also due to the slowdown in demand from the textile mills that have switched over to producing or have increased quantities of man-made fibres in their production batches as duties on polyester fibres have been brought down.

They also add by saying that a lot of textile mills have either reduced their operating capacities or have completely closed down which is also affecting the prices of cotton.

Fibre2fashion News Desk - India


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