Seemingly cotton prices aren’t in mood to decline any sooner! In fact, the prices have surged nearly 40 per cent in 2022 alone and reached at an 11-year high on the back of a demand-supply mismatch.
Reportedly, the high prices of cotton are impacting cotton yarn spinners and cotton-based textile and garments manufacturers, forcing many companies to cut down on operations across India.
It is also estimated that the average consumption of cotton per month has also reduced from around 29 lakh bales to 19 lakh bales per month in India.
The Tamil Nadu Spinning Mills Association has already made three representations to the Textile Commissioner, Mumbai on this matter, according to CNBC TV18.
“Many of the spinning mills in Tamil Nadu, which contribute up to 40 per cent production in the whole country, are running their mills only for 5 days in a week and many mills are adopting 12 hours of shift and keeping their activities closed for another 12 hours. This means, effectively there is only 35 to 40 per cent production going on,” commented K Venkatachalam, Chief Advisor, TSMA.
Corroborating the same, Ripple Patel, Vice President of the Gujarat Spinners’ Association, mentioned “The rise in prices in the international market and low domestic and international demand is worrying the spinning mills. While we are happy that farmers get high prices for their produce, we hope the price surge in input cost is distributed across the value chain. The spinners cannot just carry the burden of price rise.”
It’s worth noting here that Indian Government recently announced the removal of 10 per cent import duty on cotton in April and the move was aimed at encouraging purchases from markets outside of India to address domestic shortages.
Source : https://in.apparelresources.com/