The recent increase in cotton prices is emerging as an issue of concern to the textile industry, the main consumer of cotton.
A month ago, the price of Shankar 6 variety of cotton was ₹43,000 a candy. It is almost ₹46,000 a candy now.
S.K. Rangarajan, president of the South India Spinners’ Association, said that yarn prices had gone up for some varieties. “The market might not absorb any further increase in yarn price,” he added. Apart from price, the mills also faced quality issues in domestic cotton this year. Further, the industry fears that prices might remain high next season as well as China was importing cotton. According to textile mills, the higher cotton prices reflected on yarn prices. For, some yarn varieties, the prices had gone up by 15 %.
The mills that had covered cotton at the beginning of the season would benefit now.
Those who were buying for daily needs might be affected. Cotton stocks with small and medium-scale mills would be low. Internationally, China was said to be importing large quantities, according to industry sources.
The mills fear that as the season comes to an end, the prices might go up further. Since cotton is the main raw material, the entire textile value chain will be affected.