Industry reaches out to Centre for stabilising cotton prices

The price of cotton has increased from Rs35,000 to Rs43,000 per candy (355 kg) in a short span of time

Industry reaches out to Centre for stabilising cotton prices

Vijay C Roy

Tribune News Service

Chandigarh, January 13

Fabric makers and garment exporters are finding it difficult to cash in on the sudden spurt in demand for fabrics, garments and other textile products from the exports market. According to the exporters, they are facing crisis due to steep increase in cotton price.

Talking to The Tribune, the exporters said post-Covid, global textile scenario has opened up enormous opportunities for the Indian textiles and clothing industry due to various reasons, including US sanctions on Xinjiang’s (China) cotton and cotton-based textile products. However, high cotton prices are acting as a deterrent to the exporters.

Since the spinning industry is left with no inventory and is struggling to reach the pre-Covid levels amid the continuing threat of Covid pandemic, there is a mismatch in the supply and demand.

“Cotton prices are higher this year as there is a significant demand of yarns from the garment makers. The high demand has pushed the prices northwards,” said Punjab Cotton Factories and Ginners Association president Bhagwan Bansal.

Perturbed over the high prices, the National Committee on Textiles and Clothing, which includes stakeholders of textile and clothing industry, has sought the intervention of Union Minister of Textiles Smriti Irani.

“Since the Cotton Corporation of India (CCI) has become a major player in the cotton procurement, the pricing methodology is essential to make the entire textile value chain competitive,” says the letter written by them.

The letter further states since fabric and garment exporters commit for orders over a longer period, the yarn prices need to be stabilised at least for a month. The CCI also needs to change the prices only on a monthly basis and ensure its stability.

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