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Indian Cotton Situation Currently Stable

The cotton situation in India from both producers’ and users’ points of view seems to be stable.

The general manager of a large spinning mill in South India stated that spinners, ginners and farmers are realizing a reasonable price since February. The manager, whose mill procures 40,000 bales (170 Kgs each) of cotton each year, noted that spinning mills have been suffering over the past two years, and many have been forced to close due to cotton price volatility and weak yarn prices.

This trend seems to have reversed.

The South India mill has about 68,000 spindles and spins cotton yarns with an average count of 65sNe. They procure generally MCU-5 cotton with 30 mm staple and produce yarns with counts ranging between 60sNe and 80sNe, catering to bed sheets and poplin fabric producers. Currently, the mill has purchased MCU-5 cotton at about Rupees 46,000 per candy (356 Kgs).

Yarn prices have steadily climbed and are comfortable now, stated the source. The price of fine count 60sNe is about Rupees 290 per kilogram – a gain of about 40 rupees per kilogram over the past year, which is a favorable trend.

In India, 65% percent of this season’s cotton crop has arrived. If the price stability is maintained, it will be win-win for the cotton and textile sectors. Yet, as the source cautioned, if the cotton price skyrockets as was the case sometime back, it would make it difficult for the spinners.

Presently, however, cotton price vis-à-vis yarn price is comfortable.

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