Enough bales for exports: Cotton body ex-chief
The Mumbai-based Cotton Association of India has pegged the domestic cotton production for 2007-08 (October to September) at 315 lakh bales of 170 kilograms each against 280 lakh bales the previous year.
By NIDHI SHARMA, TNN |
MUMBAI: The Mumbai-based Cotton Association of India, a trade organisation for cotton growers, traders and merchants has pegged the domestic cotton production for 2007-08 (October to September) at 315 lakh bales of 170 kilograms each against 280 lakh bales the previous year.
The association expects India to export seven million bales of cotton this year against 5.5 the previous year. The association’s immediate past president K F Jhunjhunwala told ET that considering consumption of 220 lakh bales by the textile industry and additional 15 lakh bales by the unorganised sector there would be a surplus of around 80 lakh bales for the exports.
Coming down strongly against people who want that the government to ban cotton exports, Mr Jhunjhunwala said, “Cotton farmers should not be expected to subsidise the textile industry.” He added that farmers now get a reasonable price and if the exports are restricted they may substitute cotton with other remunerative crops.
With reduced supplies from the US, Indian cotton is in demand and we have so far shipped three million bales out of the contracted 5 million bales for this year. The major importers for Indian cotton are China, Pakistan, Thailand, Indonesia, Bangladesh and other South East Asian countries.
Cotton price have been ruling at Rs 20,000 per candy for 29 mm variety since November touching a high of Rs 20,500 and a low of Rs 19,000. However Mr Jhunjhunwala feels that domestic cotton price is at par with the international price. “Some seasonal depression was expected in the price but with good export demand price has not come down ,” Mr Jhunjhunwala said.
On NCDEX the most liquid Kapas Surendranagar V-797 contract for April delivery closed down at Rs 501 per 20 kg against the previous close at Rs 506.7. The volume has also gone up at approximately Rs 50 crore.
The association will make a presentation at the Cotton Advisory Board meeting on Friday, to be chaired by the textile commissioner. It has asked the government for an increase in the duty drawbacks that are between 5-10 % in other commodities but are 1% in cotton.
According to an NCDEX report the Indian textile industry is facing the challenge of increasing exports. The resultant shortage of quality cotton, high bank rates, appreciating currency and fall in cotton yarn prices have affected the working mills in country.
According to The International Cotton Advisory Committee world cotton production in 2007-08 is estimated to decline by 3% to 26 million tonnes while the global cotton mill consumption is expected to increase by 3% to 27.4 million tonnes.
The association expects India to export seven million bales of cotton this year against 5.5 the previous year. The association’s immediate past president K F Jhunjhunwala told ET that considering consumption of 220 lakh bales by the textile industry and additional 15 lakh bales by the unorganised sector there would be a surplus of around 80 lakh bales for the exports.
Coming down strongly against people who want that the government to ban cotton exports, Mr Jhunjhunwala said, “Cotton farmers should not be expected to subsidise the textile industry.” He added that farmers now get a reasonable price and if the exports are restricted they may substitute cotton with other remunerative crops.
With reduced supplies from the US, Indian cotton is in demand and we have so far shipped three million bales out of the contracted 5 million bales for this year. The major importers for Indian cotton are China, Pakistan, Thailand, Indonesia, Bangladesh and other South East Asian countries.
Cotton price have been ruling at Rs 20,000 per candy for 29 mm variety since November touching a high of Rs 20,500 and a low of Rs 19,000. However Mr Jhunjhunwala feels that domestic cotton price is at par with the international price. “Some seasonal depression was expected in the price but with good export demand price has not come down ,” Mr Jhunjhunwala said.
On NCDEX the most liquid Kapas Surendranagar V-797 contract for April delivery closed down at Rs 501 per 20 kg against the previous close at Rs 506.7. The volume has also gone up at approximately Rs 50 crore.
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The association will make a presentation at the Cotton Advisory Board meeting on Friday, to be chaired by the textile commissioner. It has asked the government for an increase in the duty drawbacks that are between 5-10 % in other commodities but are 1% in cotton.
According to an NCDEX report the Indian textile industry is facing the challenge of increasing exports. The resultant shortage of quality cotton, high bank rates, appreciating currency and fall in cotton yarn prices have affected the working mills in country.
According to The International Cotton Advisory Committee world cotton production in 2007-08 is estimated to decline by 3% to 26 million tonnes while the global cotton mill consumption is expected to increase by 3% to 27.4 million tonnes.
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