homemarket Newscommodities NewsCotton prices could rise to Rs 75,000 per candy by mid 2023, says Cotton Association of India
Cotton prices could rise to Rs 75,000 per candy by mid-2023, says Cotton Association of India
Looking at lower cotton production and higher Indian cotton consumption, very soon Indian status of net cotton exporter country will change to net cotton importer country, Atul Ganatra, President at Cotton Association of India said.
Global cotton prices are trading at a four-month low. However, due to high consumption of cotton, Indian mills are seeing a good demand for cotton.
“At present, Indian cotton prices are at Rs 62,500-63,000 per candy. It looks like the rates will be steady now but after May, cotton arrivals will start reducing and cotton prices will slowly go up. We assume cotton prices may touch Rs 70,000-75,000 per candy in June-July in India,” Atul Ganatra, President at Cotton Association of India said.
The increase in cotton prices can be attributed to the weak demand globally, which has led to a decrease in cotton exports this year. Exports were 42 lakh bales last year, but they are expected to be around 25 lakh bales this year.
“Last year, our export of cotton was 42 lakh bales but this year, we expect cotton export will be around 30 lakh bales. But looking at higher Indian cotton rate, we may reduce cotton estimation export from 30 lakh bales to 25 lakh bales,” he said.
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“Looking at lower cotton production and higher Indian cotton consumption, very soon Indian status of net cotton exporter country will change to net cotton importer country,” he added.
Despite the weak demand, India has managed to export 12 lakh bales of cotton till March.
In terms of spinning mills, he believes, it is a good time for the spinning mills. “Mills are making small profits and running at 100 percent capacity,” he mentioned.
From last two months, Indian mills are making profits. He is seeing good future for the Indian spinning mills as China, Bangladesh are slowing down and the demand from both these countries are converted to India.
For more details, watch the accompanying video
(Edited by : Pradeep John)
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