Local demand to back strong cotton prices – JN Singh
07 Jun '07
1 min read
Calculations show that during the 2007-2008 area under cultivation of genetically modified (GM) cotton seeds is bound to increase.
India will have larger lands for cotton growing, boosting the overall yield for this year. Experts expect production to reach over 300 lakh bales, up from 270 lakh bales in 2006-2007.
However, this improved output is not likely to affect prices. Analysts say that supply will be ample the prices will continue a strong trend, especially due to the booming domestic industry.
Textile Commissioner JN Singh confirmed to Fibre2fashion that though exports have dropped, growing local demand will back firm cotton rates.
He said the due to strengthening rupee exports this year would decline to around 30-35 lakh bales from 47 lakh bales last year.
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