There may be a marginal shift in the spinning pattern of the textile mills in and around Coimbatore owing to the surge in the prices of ELS cotton in a short time span of three weeks, according to K N Viswanathan, secretary of the South India Cotton Association (SICA). | |
| Because of shortfall in production and steep increase in demand, especially for ELS cotton, yarn prices have increased by 30 to 40 per cent. |
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| The price of ELS has gone up in the last three months by 30 per cent, and it is being quoted at Rs 35,500 a candy for 35-36 mm fibre length. |
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| According to Viswanathan, the trade here anticipates a demand gap of four to five lakh bales for ELS cotton. As against the projected consumption of around 16-17 bales, ELS cotton output this year is pegged at around 12 lakh bales. |
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| While the home grown DCH-32 variety of ELS cotton, the much sought after by the domestic spinners, is quoted at Rs 35,500 per candy, the other ELS variety - MCU-5, with a fibre length of 34 mm, is being quoted at over Rs 22,500 for spot delivery, according to a SIMA (South India Mills Association) report. |
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| Owing to this steep hike in prices, the mills in the region using ELS will find the going difficult and 12 mills have already switched over to production of low count yarns, sources say. |
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| The price of low count yarns is ruling steady and it has not seen any remarkable increase. Low count yarns such as 20s and 30s are ruling at Rs 433 and Rs 520, registering a four per cent and zero per cent increase respectively over January '05. |
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| "However, the shifting of mills in their spinning pattern is only a temporary arrangement and this trend will continue till the prices of high count yarns stabilise," Viswanathan said. |
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| SICA plans to increase the area under cultivation of ELS Bt cotton. With this, the production would be doubled next year, from the present nine lakh bales a year, he added. |
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