According to industry sources cotton stocks with small and medium-scale mills would be low. Internationally, China was said to be importing large quantities. Those who were buying for daily needs might be affected.
The mills that had covered cotton at the beginning of the season would benefit now. The mills fear that as the season comes to an end, the prices might go up further. Since cotton is the main raw material, the entire textile value chain will be affected.
The recent increase in cotton prices is coming out as an issue of concern to the textile industry who is the main consumer of cotton. Rates may remain high next season also on China imports.
S.K. Rangarajan, president of the South India Spinners’ Association, said that yarn prices had gone up for some varieties. He quoted that, “The market might not absorb any further increase in yarn price,” he added. Apart from price, the mills also faced quality issues in domestic cotton this year. Further, the industry fears that prices might remain high next season as well as China was importing cotton. According to textile mills, the higher cotton prices reflected on yarn prices. For, some yarn varieties, the prices had gone up by 15 %.
The price of Shankar six variety of cotton was Rupee 43000 a candy a month ago, now it is almost Rupee 46000 a candy.