Textile mills have started to import cotton from West Africa and the US as the landed costs are on par with the prevailing market price in the country. The textile mills have contracted to import about 15 lakh bales (a bale is 170kg) of cotton as its prices are on the rise in the country, industry officials said.
Cotton prices have jumped by Rs 6,000 per candy or 15.8 per cent since November. Price of the popular Shankar-6 cotton had on an average increased by Rs 2,500 per candy in the past two months and is now trading at Rs 44,000 per candy.
“There is a spurt in import contracts as domestic and imported cotton prices are more or less at same levels,†said K Selvaraju, Secretary General, Southern India Mills’ Association (SIMA).
“Textile mills had been entering into contracts to import cotton, mostly from West Africa, for the past couple of days,†said Atul P Asher, Secretary, Indian Cotton Federation (ICF).
“Imported cotton appears to be attractive due to better yarn realisation, productivity and quality,†said M Senthilkumar, Chairman, SIMA. The Cotlook A index, the global benchmark for cotton prices, which by and large ruled at 79 cents per pound in October, is now quoting about 87 cents.