homemarket Newscommodities NewsCotton price at all time highs: Strong demand despite lockdown disruptions; export likely to be tepid
Cotton price at all-time highs: Strong demand despite lockdown disruptions; export likely to be tepid
Cotton prices are trading at all-time highs even as there have been lockdown-led restrictions as the demand has been quite strong. The Indian mills are reported to be holding more than 100 days of inventory currently. In the International market, there is a deficit. Pakistan and South Africa productions have been hit and so, the Indian exports have been stronger putting the industry in an advantageous position.
Cotton prices are trading at all-time highs even as there have been lockdown-led restrictions as the demand has been quite strong. The Indian mills are reported to be holding more than 100 days of inventory currently.
In the International market, there is a deficit. Pakistan and South Africa productions have been hit and so, the Indian exports have been stronger putting the industry in an advantageous position.
Atul Ganatra, President of Cotton Association of India said, “In Crop Committee of the Cotton Association of India (CAI) held on June 12 the committee has made few changes like crop size is reduced from 360 lakh bales to 356 lakh bales, the cotton consumption is increased from 315 lakh bales to 325 lakh bales. The cotton export target is increased from 65 lakh bales to 72 lakh bales.”
Ganatra explained the reasons cotton prices have gone up. He said, “Mills have increased their inventory and that is the reason the cotton price has gone up. Also, the government agencies and Cotton Corporation of India have increased their prices around Rs 4,000 in last one month."
On export demand, he said, “As far as export is concerned so far India has done shipment of cotton around 58 lakh bales has been shipped. At this increased rate we are not seeing much on export demand.”
For the full interview, watch the accompanying video
(Edited by : Abhishek Jha)
First Published: Jun 15, 2021 5:15 PM IST
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