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| Global cotton prices may rise on low supply |
| Press Trust Of India / New Delhi Dec 04, 2009, 00:10 IST |
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Global cotton prices are likely to rise by nine per cent to 67 cents per pound in the 2009-10 season due to shrinking global stocks and increasing consumption, the International Cotton Advisory Committee (ICAC) said today.
Increase in global cotton rates will add to the woes of the domestic garment industry, reeling under falling demand from importers and high domestic cotton prices.
At present, domestic cotton costs are higher than the global market. Shankar cotton is ruling at Rs 27,000 per candy today against Rs 21,500 per candy in October, said an official with the Confederation of Indian Textile Industry . One candy has 356 kg of cotton.
“Any rise in world cotton price is surely going to affect the domestic price, which will further have impact on the textile industry as they won’t be able to buy the fibre at such high prices,” the official said.
The 2009-10 season’s average Cotlook A Index is forecast at 67 cents per pound. This would represent a 9 per cent increase from the 2008-09 average, ICAC said in a statement.
This means domestic prices, which have already risen by 20 per cent in just two months, may further jump taking cues from the global market.
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