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Cotton output may dip, but prices likely to stay low
E-Tex Staff, Mumbai
With the Northern and Western regions of the country in the grip of deficit
rain fall, the industry fears lower cotton production during the next season.
However, despite expectations of lower production, cotton prices will remain
under pressure due to oversupply in the global market.
Industry experts say that globally cotton prices are already under pressure
and will further slide, as China has decided to stop import due to higher cotton
supply in the domestic market. In the domestic market, cotton average spot rates
for variety S-6 is being quoted at Rs 6,580 per qtl, down from Rs 6,694 per
qtl in June 04 and for H-4 variety it slid to Rs 6,271 per qtl from Rs 6,215
per qtl. Sources in GTN Textiles said, “Textile industry is alert on deficit
rainfall in the major cotton-growing states like Gujarat and Maharashtra. However,
it is time for rain Gods to smile on cotton-growing state.”
During the first week of July, widespread lower than expected rain has not maintained
favourable growing conditions for cotton seeds. Monsoon was more scattered during
the second week of July across North, Western and Southern cotton growing areas.
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