Comments
Cotton Corporation of India (CCI) has sold about 5 lakh bales of cotton through the e-auction portal in the current cotton season, its Chairman-cum-Managing Director BK Mishra has said.
Mishra told BusinessLine that since the launch of the portal in April 2013, the Corporation sold around 7.5 million bales through e-auction.
‘Working well’ “It is working well for domestic prices; we place 25 small-sized lots every day and this is in response to industry demand for smaller lots,” he added.
CCI has, during the current cotton season exported about 60,000 bales to Bangladesh through e-auction, he said and admitted to a drop in domestic mill consumption because of production slowdown and piling yarn stock.
Chinese impact To a query on China’s impact on Indian cotton trade, Mishra said, “With China liquidating its stock of the white fibre, there is surplus stock here. This, coupled with production slowdown, has resulted in prices moving south. Cotton price is currently ranging between ₹33,000 and ₹35,000 a candy, which is the lowest in last three years.
“Again since exports to China appear to be less in the ensuing season too in view of their stock of about 12 million tonnes (accumulated over the last 4–5 years), the domestic price (of Indian cotton) is also expected to remain static.”
On the stock position, he said, “There will be no shortage of cotton this season. Mills, which have been holding 2 -3 months cotton inventory earlier, are now intent on reducing the carrying charges. We have adequate volume of quality cotton. The stock on hand as on date is around 30 lakh bales.”
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.