Demand for cotton to go up with mills & export boom
12 Jul '06
2 min read
Demand for cotton is set to increase to 248 lakh bales this year, due to the upswing in number of mills and small scale industries coupled with the boost in export volume.
Among all sectors using the cotton, mills lead the way with a projected consumption of 182 lakh bales compared to the total consumption of 163 lakh it had last year.
Small Scale Industries will need about 18 lakh bales, a rise of one lakh bales as compared to last year's requirement.
Consumption other than mills is poised to jump from one lakh to 15 lakh bales this year.
East Indian Cotton Association President, KF Jhunjhunwala said that because of bumper production of the crop, prices of cotton should not fluctuate alarmingly in spite of the boom in their demand.
However, he conceded that prices have gone up by three to four percent when seen in the context of the same day last year.
Total cotton import is also expected to decline from 12 lakh bales to four lakh bales this year.
Cotton production is expected to be at 467 kilogram per hectare nation wide.
Gujarat and Tamil Nadu are poised to yield cotton in the tune of 728 kilogram and 687 kilogram per hectare, respectively, this year, beating their previous year output of 651 and 658 kilogram per hectare.
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