The Hindu Business Line : `Monsoon delay may push cotton prices up'

THE demand for cotton textiles, both domestic and export, is showing some positive signs; however, the delay in monsoon will affect the cotton textile industry, according to Mr Sanjay Jayavarthanavelu, Chairman, Textile Sub-Committee, CII (SR) and whole-time director, Lakshmi Machine Works Ltd. This would possibly lead to an increase in cotton prices, he said.

He said in a press release that currently China is importing a good volume of cotton textile from India. However, he reiterated that the textile industry in India is gradually losing its competitive advantage due to the high cost of power and poor infrastructure. According to Mr Jayavarthanavelu, power in 1970s as the cost component of cotton textile was around four per cent of the cost, but today it is around 12 per cent. Further, long export lead times are eroding India's competitiveness across the supply chain.

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