For last 3-4 months, speculators are trying to sky rocket cotton prices. This is killing the Indian textile sector, claims industry watchers.
Cotton prices in India are skyrocketing – thanks to speculators who are jacking up cotton prices despite the fact there are no substantial jump in demand from clothing segment, cotton textile chain or exports. This is killing the Indian textile sector, claims industry watchers.
â€œFor last 3-4 months, speculators are trying to sky rocket cotton prices. Cotton Corporation of India (CCI) revises prices every morning by Rs 300 per candy, Rs 500 per candy and Rs 1000 per candy even if they do not have stock. Big money bags funded from external funds at zero interest and hedging in New York. MCX are artificially jacking up cotton prices,â€ said Dr Rikhab C Jain, Chairman of T T Group, in a press statement.
For last 10 days or more, more than 130,000 cotton bales are arriving per day in India, more than normal average during October month of any year. There is no cotton crop failure in India or anywhere in the world. Cotton production crop has been expected to be somewhat more than expected last year. End of the season carry-on cotton stock is much higher than ever before.
â€œClothing people, exporters, overseas importers, power loom people, co-operative sectors, all are crying but nobody is listening. Nobody knows who will check speculators. Remember on any day not very far, prices of cotton would crash and many people will fall in deep sea and enter into huge losses. Speculators are trying to make money at the cost of the whole cotton textile chain and industry. Concerned authorities, concerned trade authorities and concerned chain industry are required to take note and issue SOS for bringing cotton market to normalcy. I request industry colleagues to understand the situation. Please examine the matter urgently and collectively raise a call on authorities and seek quick action,â€ said Dr Rikhab C Jain.