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    India Garment Manufacturers Worry That Cotton Is Not Enough To Fight Against Cotton Exports.

    2010/10/21 10:11:00 40

    India Garment Manufacturers

    Because of the worry that cotton is not enough, domestic manufacturers in India oppose exporting 5 million 500 thousand bales of cotton (170 kg / bag), they say, in addition to the whole. Textile industry Besides the cost increase, the capacity of yarn and textile factories can not be fully utilized.


    Ashish Bagrodia, President of the North India textile mill Association, said that in any case, 5 million 500 thousand bales of cotton should be stopped. cotton Export, India Cotton Advisory Committee predicted that the domestic textile industry cotton consumption will exceed 26 million 600 thousand bales.


    Bagrodia said, Exit The plan proposes to export only 5 million 500 thousand bales of cotton, and the yarn to stock ratio is only 20%, far below the average of 40%.


    Before March 2011, the yarn factory will still face the pressure of shortage of raw materials. Because of the export of cotton, the price of raw cotton will remain high until January 2011, when the quantity of cotton arrived in -3 months.


    At present, the domestic market price of cotton is 41000 rupees / candy (37.32 kg), which is about 90% higher than the 22400 rupees of the same period last year.


    As of November 30th, the market volume is only about 600-650 bales, during which cotton consumption will exceed 4 million 500 thousand packages. Therefore, if we consider the Cotton Advisory Committee's forecast, last year's final inventory will have 4 million 50 thousand packages. If we export 5 million 500 thousand bales of cotton during this period, there will be basically no cotton stocks left in India. This will trigger a cotton shortage in India, and the textile factories will be shut down or slashed production.


    In the last fiscal year, India exported 2 million 300 thousand bales of cotton, resulting in a 4 million drop in inventory at the beginning of the new year in October 2010. By comparison, the inventory in October 2009 was 7 million 100 thousand bales.

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