Strong demand and high price of cotton despite lockdown
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.
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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