Migrant staff employed at a textile mill in Coimbatore in November, 2023
| Photo Credit: PERIASAMY M
The current hike in cotton prices in the worldwide market and of cotton offered by the Cotton Corporation of India (CCI) in the home market has develop into a matter of concern to textile mills, particularly small-scale models.
Atul Ganatra, president of the Cotton Association of India, stated the present Indian cotton prices are decrease than the worldwide prices by nearly ₹4,000 a sweet and the affiliation expects cotton exports this season to be nearly 20 lakh bales. About 65% of the Indian crop (about 200 lakh bales) have arrived in the market and the home demand is “very good”.
However, Koti Rao, president of the AP Textile Mills Association, advised The Hindu on Saturday that the viable value of cotton for the mills must be about ₹58,000 a sweet (254 kg). However, the value of cotton offered by the CCI went as much as ₹62,000 a sweet. “A few people have hiked the prices when they bid for cotton sold by the CCI,” he alleged.
According to Mr. Rao, there may be hardly any signal of revival of the textile trade and if the present scenario persists, extra textile mills will shut down.
N. Pradeep, who runs an MSME mill in Tamil Nadu, stated the rise in cotton prices (offered by the CCI) by nearly ₹3,500 a sweet in the final one week poses vital challenges for yarn producers. “The textile industry is grappling with poor international demand and domestic sales and import of finished garments has intensified competition. It is worth noting that the Reserve Bank of India (RBI) has rated the textile industry as Red, further highlighting the severity of the situation. The CCI should reconsider its pricing strategy and ensure that future adjustments are reflective of the current market realities,” he stated.
According to J. Thulasidharan, president of the Indian Cotton Federation, it stays to be seen if the present hike in prices will maintain in the Indian market.
