Home / Knowledge / News / Textiles / Tight supply to keep cotton prices in India firm in FY19
Tight supply to keep cotton prices in India firm in FY19
05
Jul '18
Cotton prices in India are likely to stay firm during the next fiscal following the tight demand-supply scenario, India Ratings and Research (Ind-Ra) recently said in a report. Supply constraints may arise from lower fibre production this season due to pests, acreage drop in the next season and adverse weather in other key cotton-growing nations, it said.

However, the expectation of firming prices may encourage farmers to sow and arrest the acreage contraction, a news agency reported citing the report. The cotton season in India starts in October.

Global cotton consumption is likely to be strong due to a robust domestic demand in India and rise in exports on account of the anticipated stock rebuilding by China, it said.

The next cotton season may see higher minimum support prices (MSPs) for cotton in India. However, cotton prices may trade higher than MSP, limiting government intervention, it added.

This is primarily because a sustained demand from the end-user segments will allow manufacturers to pass on the price rise, it said.

Synthetic textile players are, however, expected to see a material margin contraction during the next fiscal, due to their inability to pass on the price rise of crude oil-based raw materials, owing to the prevailing overcapacity domestically.

That may worsen due to rupee depreciation as raw material is procured at the import parity price.

Within the synthetic segment, exporters and integrated players will be better placed to absorb a higher input cost, while standalone spinning units might be the most impacted, the report said.

Textile dyes and chemical prices are likely to remain high, exerting margin pressure, it added. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 8th May 2021

French Development Agency to invest $83m in Ivory Coast cotton sector

Over a period of five years, the French Development Agency (AFD) will ...

Pic: Juki

Apparel/Garments | On 8th May 2021

Japanese companies collaborate to develop sewing machine business

Juki Corporation and Pegasus Sewing Machine Mfg have entered into a...

Pic: Rocky Brands

Apparel/Garments | On 8th May 2021

Rocky Brands expands Made in America capabilities

Rocky Brands has expanded the offering of its Made in America product ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Wearables have very limited reach

Textile Industry, Head honchos

Textile Industry
Head honchos

Main challenges are breakdown of supply chain and shrinkage of manpower

Textile Industry, Head honchos

Textile Industry
Head honchos

Farmers who produce seeds earn 50 per cent more

Ritu Oberoi,

Ritu Oberoi

Established in 2018, Forsarees is a socially driven business enterprise,...

Ismail Ajani,

Ismail Ajani

Hollywood Footwear’s story began in 1946 when Jummabhai Ajani started the...

Rishav Bajoria & Subham Sengupta,

Rishav Bajoria & Subham Sengupta

Launched in October 2020, the Gumti app could not have come at a more...

Silverio Baranzano, Fitesa

Silverio Baranzano
Fitesa

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Sachin Pendharkar, Dieffenbacher India Pvt Ltd

Sachin Pendharkar
Dieffenbacher India Pvt Ltd

Germany-based Dieffenbacher Group is a producer of high-quality composites ...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

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


May 2021

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


Advanced Search