Financial Daily from THE HINDU group of publications
Friday, Jul 30, 2004
Financial Daily from THE HINDU group of publications Friday, Jul 30, 2004 |
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Agri-Biz & Commodities
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Cotton Industry & Economy - Exports & Imports Mills in South may go for cotton import G. Gurumurthy
Coimbatore , July 29 NOTWITHSTANDING the current lull in the sale of yarn and fabric, textile mills in the South may pitch for import of raw cotton to take advantage of the easy international price situation. The textile units, especially those involved in the export market, have sought to buttress the raw material position and these units feel that the low international cotton price prevailing now may further soften by August-September in view of the higher US cotton output projection, textile trade and industry sources here say. The sources said that the current price of imported cotton averaging 50 cents per pound may further ease to 48 cents in another two months. The expectation is that the prices of the favoured US/West African cottons (for the 30s/40s count spinnable) may be pegged between 45 and 50 cents for the Oct-Dec 2004 deliveries. Many established spinners are expected to go for the US cotton this time and may find the cotton priced at 48 cents with little thrash content quite advantageous. The sources told Business Line that the cotton imports this season by Indian spinners would be in the range of three to 3.5 million bales in which the US and the West African cotton would dominate. Some mills have booked Tanzanian cotton for the July-Aug shipment and the volume of import by these southern mills is said to be in the order of 50,000 tonnes. The anticipated increase in the apparel and textile outsourcing by leading global brands including Walmart and J.C. Peny from India this year and the prevailing low interest rate have given impetus to he domestic textile majors to chalk out a larger cotton imports. The sources said these mills expect the market for textile products to turn vibrant after August.
More Stories on : Cotton | Exports & Imports | Tamil Nadu
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