ITF surmises a drop in Cotton Prices
The speculative increase in the cotton price this week to the tune of Rs. 1,500 per candy is for the short-term only and the price would gradually come down, Indian Texpreneurs Federation (ITF) felt.
“There are issues in the ‘quality of crop’ in the current cotton year in a few states, overall there would not be much drop in cotton crop this year,” ITF convenor Prabhu Dhamodharan said. He added that 80 percent of the cotton crop was yet to reach the market. Hence this will help in balancing the pricing pressure in the coming year. Charging a section of the trade with creating panic to increase prices by spreading specific negative information on cotton crop.
Prabhu has advised members to plan for cotton import for two months of the mills consumption this cotton year to mitigate the risk. ITF cotton team consisting of 15 members would again visiting two important cotton growing states in the coming week to meet partner ginners to work out an action plan for the current year.
ITF convenor said that even with Rs. 2,000 more cost, mills can get a better cost advantage because of superior quality of imported cotton with less trash and less contamination.
Apart from this, domestic cotton quality here was a big issue this cotton year due to various factors, adding there has been a drop in realization levels in spinning mills, which is leading to straight 2-3 percent increase in manufacturing cost at the yarn stage.
– Apparel and Textile News, Apparel Talk, Indian Apparel