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Strong demand and high price of cotton despite lockdown

Jun 17, 2021
Strong demand and high price of cotton despite lockdown

New Delhi

Even after the disruptions caused due to the lockdown, cotton prices are trading at all-time highs. This is because the demand for cotton has been strong and the Indian mills are holding more than 100 days of inventory.

With the deficit of cotton in countries like South Africa and Pakistan, the Indian exporters have put the industry at an advantage.  According to Atul Ganatra, President, CAI, the committee has made certain changes as the crop size has been reduced to 35.6 million bales from 36 million bales, the cotton consumption has been increased to 32.5 million bales, and the export targets have increased to 7.2 million bales. He added that as the mills have increased their inventory, the prices of cotton have gone up. The price has increased by Rs 4000 in the last month by the government agencies and CAI.

For exports, he said that India has done a shipment of cotton around 5.8 million bales. He added that as the rates have increased, the association is not focusing much on the export demand. 

Source – CNBC TV

Image Source: Wikipedia

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