By admin       2019-03-27

March 26 2019 - Domestic cotton prices are steadily moving up even as two-thirds of the estimated crop have already arrived in the market. Cotton prices have spurted by Rs 3,000 per candy (from Rs 41500 to Rs 44500) in less than a month’s time - leading to cost pressure on the entire cotton Textile and apparels value chain, industry sources said. “Cotton prices have gained sharply within a two-week time. Amid lower crop estimate, ginners suddenly panicked about a possible sharp rally in prices. This, coupled with a drastic decline in arrivals, created a bullish sentiment,” said a top official of Cotton Association of India (CAI). Daily arrivals have declined to about 80,000-90,000 bales as against what used to be at 1.3 lakh bales last year. The continuous increase in cotton price is reducing international competitiveness of the Indian textile value added industry and also affect exporters negatively, the Confederation of Indian Textile Industry (CITI) said. According to the Cotton Corporation of India (CCI), about 235 lakh bales (of 170 kg each) cotton have arrived in the market as on March 15. The Cotton Association of India (CAI) in its March 2019 estimate has pegged the crop this year at 328 lakh bales. CCI initially conducted MSP procurement operations to arrest a fall in prices due to increased arrivals. However, after buying about 12 lakh bales, CCI has reportedly stopped procurement as the market price of raw cotton or kapas gained 10 per cent above the minimum support price (MSP) at Rs 5,850-5,900 a quintal. The MSP for cotton was fixed at Rs 5,450 a quintal. So far about 38 lakh bales have been exported, while the CAI estimates put shipments at 50 lakh bales for the season ending September 2019. “Due to higher prices, export contracts have taken a halt. But we believe that our target of 50 lakh bales will be achieved with China and Bangladesh as key destinations,” CAI said.

Download App

# #

Member Login