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| Cotton, yarn prices up in Punjab, Haryana |
| Press Trust Of India / New Delhi/ Chandigarh Apr 07, 2009, 00:56 IST |
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Cotton prices in Punjab and Haryana have spiralled by up to 13 per cent in the last one month on account of rising demand from the local spinners. Prices of cotton yarn have also inched up by 13-14 per cent in the same period and this has helped spinners protect their margins.
Industry analyst said garment manufacturers of the northern region had adopted a wait and watch policy before making any decision on prices of garments. “The rates of cotton have increased in the past one month due to buying by the spinning industry and negligible arrival of the crop in the market,” Vardhman Textiles Limited corporate general manager IJ Dhuria told PTI.
Cotton prices currently are ruling at Rs 2,330-2,380 per maund against Rs 2,100-2,140 per maund one month back in Punjab. One maund is equal to 37.324 kg.
Similarly, the rates in Haryana stand at Rs 2,295-2,320 per maund compared with Rs 2,035-2,080 per maund, traders said.
Fresh demand for textile has been witnessed after four months, when the spinning industry had reduced their raw cotton intake by over 50 per cent in view of pressure on margins and cut down their output by 20-35 per cent in view of 40 per cent hike in the minimum support price of cotton.
In accordance with increasing cotton rates, yarn prices too have jumped 13-14 per cent. The rate of cotton yarn (30 count) has increased to Rs 125 per kg from Rs 110 per kg one month ago, traders said.
Considering the surge in yarn prices as a positive sign for the spinning and textile industry, industry experts are sceptical about the sustainability of rates. “It is too early to say that current cotton yarn prices are going to hold or not. But rates of garment are not going to go up for the moment as the fabric prices have not inched forward,” Nahar Spinning Mills managing director Dinesh Oswal said.
However, the total arrival of cotton in Punjab and Haryana significantly declined because of lower output. Against the last year's total arrival of 3.5 million bales of cotton in Punjab and Haryana, this year 3 million bales have arrived so far.
The total output in Punjab and Haryana is estimated to be 1.7 million bales and 1.4 million bales, respectively due to a significant reduction in area.
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