Low off-take from spinners leads to decline in cotton price
04 May '07
1 min read
Rupee appreciation has affected the Indian export community in general and textile exporters in particular.
Evaluation of Indian currency against the US Dollar has resulted into low off-take from textile spinners, thereby affecting cotton prices, which have gone down drastically.
The spot price for Gujrat and Maharastra cotton declined 6 percent after the first week of April.
The price of Shankar-6 from Gujrat (28 mm) was Rs20,200 a candy in the first week of April and now it stands at Rs19,000 a candy.
Declining value of Dollar has an effect on textile exporters and according to an estimate, 3-3.5 million tons of cotton are in store.
The prices may further slide down as 3-3.5 million tons of raw cotton is likely to come during next few weeks.
marketing@alchempro.com
