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G. Gurumurthy

Showers in Gujarat and other States may delay cotton arrivals

Coimbatore , Sept. 10

Very low carryover stocks available with mills and higher volume of exports anticipated would keep raw cotton prices at higher levels, despite an anticipated good crop size of 260-275 lakh bales during 2006-07 season, according to the Coimbatore Cotton Association (CCA).

The CCA President, Mr Ashok D. Daga, presiding over the 34th annual general body meeting of the association here on Sunday said that the extended showers in Gujarat and other northern cotton producing States might delay the arrivals of cotton by a few more weeks.

The carryover stocks this year is around 54 lakh bales (including the 44 lakh bales held by mill consumers).

Already, strong export enquiries being received are likely to increase the volume of cotton export to climb to around 60 lakh or more bales this season as against 46 lakh bales shipped last season.

Consumption

Added to this is the continuous expansion on the spindleage, which would push the mill consumption of cotton higher this time.

"Based on the increased delivery of the ring spinning frames by the country's leading textile machinery manufacturer LMW, at least 15 bales of cotton is being increasingly consumed every passing day," Mr Daga said, adding these developments would impact on the cotton prices even at the very beginning of the new season.

Bumper production

Mr P. Nataraj, Managing Director of KPR Mill Pvt Ltd, guest speaker, said the bumper cotton production witnessed in the past two seasons would augur well for the domestic cotton textile industry, which is set to meet the $85 billion turnover by 2010.

Aided by the right climate and the spread of the Bt cotton technology, which helped extend this year's crop area to 9.3 million hectares from 8.9 million hectares last year, the cotton production made steady increase, stabilising the raw material prices for the textile industry.

Cotton yarn

The domestic textile industry is also involved in expanding production capacities. With cotton price devoid of wild fluctuations, the cotton yarn market also has remained stable.

This is except for the last one month when due to surge in cotton prices, the yarn market has seen a price surge.

He felt the ongoing technology upgradation fund scheme (TUFS) has enabled the domestic textile industry to continue with capacity building. He said that and extending the TUFS beyond March 2007 would help the industry become more competitive.

Later, talking to press persons at the sidelines of the CCA meet, Mr Nataraj felt that the yarn market by and large may not be affected by the bomb explosions and its aftermath in Malegaon in Maharashtra.

The CCA president said his association had planned to have a cotton-testing laboratory to facilitate its members.

More Stories on : Cotton | Outlook | Exports & Imports | Textiles

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