Raw Cotton Prices Up By 27 Percent

At the start of the new cotton year that began early this month, cotton prices have firmed up due to low arrivals especially from Punjab and Haryana. According to industry sources, the prices are around 27 per cent higher compared with last year’s prices. For example, the prices of J34 variety of cotton have risen to around Rs 2,235 per mannd (md) from a low of Rs 1,635 per md last October.

Given firm price trend in the international markets, there has been good demand for cheap Indian cotton. Cotton consuming mills are facing a shortage of cotton. Local cotton prices have also risen.

Fearing shortage and further rise in prices, the Mill Owners Association chairman RK Dalmia feels the textile ministry need to urgently
intervene and see that the prices are stabilised.

Mr Dalmia said: “The industry is facing short supply of cotton raw materials in the local market. Urgent steps are to be taken by the textile ministry, particularly textile commissioner to intervene.”

According to Mr Dalmia, cotton from Punjab and Haryana states is not coming to the local market, instead farmers and traders are selling this in the export market. Due to this, the millers are facing shortage of cotton. Even, they are currently unable to import as the international prices too are high.”