Cotton demand sprints 20% on local buying
The overall cotton consumption by the domestic textile players is set to touch 218-220 lakh bales or about 20% higher than last year’s consumption.
By Abhishek Shanker, TNN |
AHMEDABAD: The overall cotton consumption by the domestic textile players is set to touch 218-220 lakh bales or about 20% higher than last year’s consumption. This is much higher than the target of 202 lakh bales, set by the Cotton Advisory Board.
So far, all major textile players in India have completed shopping for up to 90% of their cotton requirements for the year. According to industry estimates, total domestic cotton consumption has already touched about 175 lakh bales, even as the season has four months left.
Roughly, 185 lakh bales have arrived in various cotton markets across the country and over 55 lakh bales were carry-forward stock from last year. A large part of this cotton was consumed by big organised textile players like Vardhman, KSL Industries, Raymond, Sintex, Arvind Mills and Aarvee Denim, who have all commissioned many projects involving garment, fabric or spinning, thereby creating demand for additional cotton of various variety including long and medium staple fibres. “There is a definite increase in cotton consumption this year,” JN Singh, textile commissioner told ET.
What’s more is that the consumption next year is likely to grow at a similar rate, thanks to fresh investments in various segments and especially garments, many of which will be commissioned within the next one year. Vardhman and Aarvee purchased about 15%-17% more cotton this year while they project a higher purchase next year.
“We will purchase over 80,000 bales of cotton this season, which should go up to 130,000 bales next year as our expanded capacity is commissioned,” BS Pandit, CFO, Aarvee Denim said.
Vardhman has purchased about 7 lakh bales of cotton so far, higher than last year’s roughly 6 lakh bales while textile player, KSL Group purchased over 5 lakh bales cotton this year against about 4 lakh bales purchase last year.
Denim-maker Arvind Mills has largely remained watchful in cotton procurement this year due to unconducive international denim market. “So far, in the current season close to 70% cotton has already reached the market and at present the daily arrivals have dropped from a peak of about
So far, all major textile players in India have completed shopping for up to 90% of their cotton requirements for the year. According to industry estimates, total domestic cotton consumption has already touched about 175 lakh bales, even as the season has four months left.
Roughly, 185 lakh bales have arrived in various cotton markets across the country and over 55 lakh bales were carry-forward stock from last year. A large part of this cotton was consumed by big organised textile players like Vardhman, KSL Industries, Raymond, Sintex, Arvind Mills and Aarvee Denim, who have all commissioned many projects involving garment, fabric or spinning, thereby creating demand for additional cotton of various variety including long and medium staple fibres. “There is a definite increase in cotton consumption this year,” JN Singh, textile commissioner told ET.
What’s more is that the consumption next year is likely to grow at a similar rate, thanks to fresh investments in various segments and especially garments, many of which will be commissioned within the next one year. Vardhman and Aarvee purchased about 15%-17% more cotton this year while they project a higher purchase next year.
“We will purchase over 80,000 bales of cotton this season, which should go up to 130,000 bales next year as our expanded capacity is commissioned,” BS Pandit, CFO, Aarvee Denim said.
Vardhman has purchased about 7 lakh bales of cotton so far, higher than last year’s roughly 6 lakh bales while textile player, KSL Group purchased over 5 lakh bales cotton this year against about 4 lakh bales purchase last year.
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Denim-maker Arvind Mills has largely remained watchful in cotton procurement this year due to unconducive international denim market. “So far, in the current season close to 70% cotton has already reached the market and at present the daily arrivals have dropped from a peak of about
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