Cotton linter exports set to rise
Prices at the beginning of the season, which spans from November to July, have shot up to $1000 per tonne as compared to $900 last year.
By Sutanuka Ghosal, ET Bureau |
KOLKATA: Cotton linter exports to go up this year as demand increases in China and Japan. Exporters are now refusing new deals as their order book is full till December. In India, ordnance factories have ordered 4,000 tonne of cotton linter which is used in propellants.
Prices at the beginning of the season, which spans from November to July, have shot up to $1000 per tonne as compared to $900 last year. Talking to ET, PV Narayana, director of Sri Dhanalakshmi Group of Industries, said: “Cotton linter is manufactured from the outer coating of the cotton seed. Cotton linters are fine, silky fibres which adhere to the seeds of the cotton plant after ginning. India produces 35,000-40,000 tonne cotton linters annually.”
Mr Narayana attributed the rally in cotton linter to the general bullish trend prevailing in the international cotton market. Global prices have seen a sharp growth due to estimates of less production in China and Pakistan.
Floods that hit in September have almost washed away the crops in Pakistan and China. However, production in India is forecast to be good this season thanks to timely rains. Experts say the bumper Indian harvest could offset the global supply crunch and ease the prices.
P Koti Rao of Tirumala Cotton and Agro Products said this year the domestic demand was around 11,000 tonne. “This year, there is a huge demand from China and Japan,” said Mr Rao. China imports cotton linter as an alternative to wood pulp and blend it with viscose fibre. “We are flooded with orders and it is expected that the cotton linter industry will do well this year,” Mr Narayana added.
Prices at the beginning of the season, which spans from November to July, have shot up to $1000 per tonne as compared to $900 last year. Talking to ET, PV Narayana, director of Sri Dhanalakshmi Group of Industries, said: “Cotton linter is manufactured from the outer coating of the cotton seed. Cotton linters are fine, silky fibres which adhere to the seeds of the cotton plant after ginning. India produces 35,000-40,000 tonne cotton linters annually.”
Mr Narayana attributed the rally in cotton linter to the general bullish trend prevailing in the international cotton market. Global prices have seen a sharp growth due to estimates of less production in China and Pakistan.
Floods that hit in September have almost washed away the crops in Pakistan and China. However, production in India is forecast to be good this season thanks to timely rains. Experts say the bumper Indian harvest could offset the global supply crunch and ease the prices.
P Koti Rao of Tirumala Cotton and Agro Products said this year the domestic demand was around 11,000 tonne. “This year, there is a huge demand from China and Japan,” said Mr Rao. China imports cotton linter as an alternative to wood pulp and blend it with viscose fibre. “We are flooded with orders and it is expected that the cotton linter industry will do well this year,” Mr Narayana added.
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