Trade seeks suspension of cotton futures by admin- Friday, January 7th, 2022 08:27:06 AM
At ₹72,000/sweet, Indian cotton is now the most expensive inside the world
Prices up 31% in first 3 months of the 2021-22 cotton season
Textile fee chain is feeling the warmth of spiralling cotton prices. The ginned cotton rate for 29 mm variety, which become quoted ₹fifty five,000 a sweet (every of 356 kg) on October five, 2021, has jumped by way of 31 per cent to the touch a document high of ₹72,000 now.
With no respite for charges in sight, the industry is searching for authorities intervention to rein within the spiralling fees by implementing measures such as transient suspension of cotton futures trades on exchanges.
“At this charge, Indian cotton is now costliest inside the international. This causes value burden for millers and the ginners too. We consider limiting cotton futures at the least for a month’s time, will ease out the charge rise. And once the costs stabilise and start sinking, we are able to see extra arrivals inside the markets,” said J Thulasidharan, President, Indian Cotton Federation (ICF). According to the exchange sources, for the primary 3 months of the cotton marketing yr 2021-22, about forty according to cent of the projected 360.13 lakh bales of crop has arrived in the market. The last stock is said to be with the farmers who are looking forward to raw cotton (Kapas) expenses to in addition cross up from its contemporary levels of ₹10,010 a quintal in Rajkot markets in advance this week.
Leading textile player, TT Limited’s Chairman, Rikhab C Jain on Wednesday wrote a letter to the Prime Minister Narendra Modi seeking his intervention to initiate measures to reduce the charge upward thrust. In his letter, Jain has mentioned that the cotton prices have been sky-rocketing regardless of “unparalleled great damage-free crop”.
He alleged that the rate hike is in most cases because of the speculative trades by means of multi-country wide agencies, retaining the shares, and Indian speculators indulging into cash-making at the fee of textile industry. “Government needs to take instantaneous motion. O therwise, powerloom area, hosiery sector and clothing industry is about to come to a grinding halt,” he said asking for the Prime Minister for immediate movement to forestall hedging and buying and selling of kapas by way of speculators on commodity exchanges which includes Multi Commodity Exchange and New York Cotton Exchange (NYCE).
Notably, this call for for regulations on cotton futures trading comes after Tirupur Exporters’ Association raised their call for earlier this week for removal of eleven in line with cent import obligation on cotton.