TAMIL NADU

Drop in demand: year may end with high cotton stock

There is a drop in cotton demand from China, says industry. -File photo  

India is expected to close the cotton year (October 2014 to September 2015) with nearly 60 lakh to 70 lakh bales of cotton stock, according to cotton trade and textile industry here.

Though there is a fear that cotton prices might shoot up because of reports of deficient monsoon this year, K.N. Viswanathan, vice-president of Indian Cotton Federation, said that there are stocks with the Cotton Corporation of India and the traders.

Cotton price has not seen much fluctuation this year and mills were also purchasing only according to their requirement because of the slowdown in the yarn market.

Almost 345 lakh bales have arrived in the market so far this year and export demand was not high.

The mills usually have three month to eight month cotton stock with them. This year the units are having just about a month’s stock. Hence, the Government should support the industry to have adequate cotton stock, the federation has said in a press release.

Southern India Mills’ Association (SIMA) chairman T. Rajkumar has said in a press release that cotton exports are expected to be just about 55 lakh bales this year because of drop in demand from China.