Cotton Prices Rise And Impact On India Knitting Industry

India

Because Rupp enterprise cluster mainly produces cotton.

Shang Carle -6 cotton prices rose from 22700 rupees / candy (356 kg) to 37700 rupees in October 2011 from the beginning of October 2009 (cotton year's beginning), and now lingered at 64000 rupees, while Carle 6 cotton is the largest amount of cotton in the Ti Rupp cluster enterprises.

Textile exporter, Raja Muthusamy Shanmugam, a member of India's state-owned cotton advisory committee, said last month cotton prices were almost daily, and textile mills could hardly keep large inventories.

He said that since January 1st, the price of Carle -6 has risen from 43000 rupees / candy to the current 64000 rupees / candy.

Under normal circumstances, this situation should not occur in January when the most cotton.

According to him, this year, because of many reasons, the output of some major cotton producing countries has decreased, such as the United States and China. Besides, the international cotton prices have soared and the domestic market prices have increased correspondingly.

A. C. Eswaran, President of the India knitwear manufacturers association (SIHMA), said that because speculative trading and hoarding cotton led to a further rise in cotton prices, the situation could only be more and more severe.

The inventory of large spinning mills in this area can only be maintained for another three months, so this grim situation can only deteriorate further.

As the price of cotton increased, the price of cotton yarn in the domestic market also rose.

The cost of 40 yarn is now 275 rupees / kg.

The price in January 1, 2010 was only 164 rupees / kg.

Mr. Eswaran believes that the government should ban cotton futures trading, ensure adequate supply of cotton and yarn, and allow exports only after meeting domestic demand.

He said that this is the only way to let prices drop.