Thanks to the increase of nearly 25-40 percent in the Minimum Support Price (MSP) of cotton, implemented by the government of India, the country could end up importing a higher number of bales in the current cotton season.
International cotton prices are quoting at a discount ever since the government owned agency Cotton Corporation of India (CCI) started its procurement, forcing eligible importers to import cotton which is available at a lower rate.
Fibre2fashion spoke to Mr DK Nair, Secretary General of the Confederation of Indian Textile Industry (CITI) was very forthcoming when he said, “About 500,000 bales (1 bale = 170 kg) of cotton has arrived in the country so far and another 500,000 bales may be imported in the remaining part of the current cotton year, since ours is the costliest cotton in the world today and mills are looking for cheaper options abroad”.
He added by saying, “An unprecedented increase in imports may lead to decline in prices for the new crop and if this happens, it would be the result of reckless government intervention in the cotton economy during this year. The Government needs to separate populism from policy and to recognise the interdependence of cotton farmers and textile mills”.
Mr KF Jhunjhunwala, Chairman of Cotton Textiles and Allied Products Research Foundation, and Past President of Cotton Association of India, said, “This year import of cotton till September will touch 800,000 bales out of which 500,000 will be extra long fibres and 300,000 bales would be medium and small staple fiber”.
“Every year we import approximately 600,000 bales of cotton so this year it will exceed by only 200,000 bales which is not a matter of concern, though it is tough to predict about the future because it depends on the behaviour of the weather and if it rains well situation will be good”.
Source : www.fibre2fashion.com