Late Monsoon Revives Demand in India
July 2, 2009 via the Hindu News Update Service
Demand for cotton is on the rise after a month-long period of stagnation, thanks to the late monsoon and resultant delay in sowing, which has prompted millers to build stocks to avoid any emergency in near future.
“Intake by millers is picking up. Sales of cotton started picking up towards the end of this month due to the delay in monsoon after remaining very low for about a month,” Cotton Corporation of India (CCI) Chairman and Managing Director Subhash Grover said.
The corporation has offloaded 79.5 lakh bales (one bale is equal to 170 kg) of cotton so far out of the procurement of 89.4 lakh bales, Mr. Grover said. The CCI offloaded 17,000 bales on Monday after selling at an average of below 5,000 bales a day during the month.
Mr. Grover said large millers are now buying to create stocks for use in September and October following the delay in monsoon. Moreover, small mills, which don’t have much storage facility, are also buying.
An industry official admitted that the delay in monsoon has created apprehension about the fate of cotton output in 2009-10, prompting millers to buy the fiber to create comfortable stocks for future use.
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