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Cotton prices expected to fall sharply |
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AHMEDABAD: The price of cotton is likely to see a sharp decline by the year-end owing to poor demand from yarn mills, fall in demand from Chinese market and expected bumper crop. The cotton production in 2012-13 (October- September) was 3.9 crore bales which is expected to be more than four crore bales this year.
As the monsoon got delayed, arrivals of fresh crop has also been delayed which may cause glut in the market. "Against 3.9 crore bales of cotton produced last year, we exported 1 crore bales which is likely to come down in spite of bumper crop," said Bharat Chhajer, convenor, export promotion panel, Powerloom development and export promotion council (PDEXCIL).
"The cotton prices are expected to fall by Rs 3000- Rs 5000 per candy (a pack of 356 kg) by December if exports do not pick up," said Chhajer. "China has stopped importing cotton as the country is facing labour and cost issues," said Vishwanath Agarwal, chairman, PDEXCIL.
Industry insiders believe that government agencies need to intervene and take urgent measures to increase the exports in view of bumper cotton crop. "Against the demand for cotton, supply is growing faster and there is likely to be situation of oversupply in the market. We expect the production to be around 4.25 crore bales," said Ashish Shah, managing director, Aarvee Denim and Exports Ltd (ADEL).
"We have demanded from central government to either increase the drawback on cotton from existing 5% else provide relief of 2%-3% more," said Chhajer.
PDEXCIL will be organizing 'Indian International Fabric Expo 2014' (IIFE) in Ahmedabad from October 14 to October 16, 2014 for powerloom entrepreneurs and exporters scouting for overseas buyers. The three-day exhibition is being organized with support from ministry of textile, Government of India, and Government of Gujarat and under the Market Assistant Initiative Scheme of Union ministry of commerce & industry.
Textile exports may double by 2017-18
According to PDEXCIL, India's share in exports is expected to double by 2017-18 to 10% from existing 5.1%. Last year India exported textile worth Rs 52,000 crore which increased to Rs 76,000 crore this year. "The exports from India is likely to cross Rs 1,76,000 crore in 2017-18, growing at compounded annual growth rate of 35%," said Chhajer.
Source : timesofindia.indiatimes.com
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