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Our Bureau

Southern spinners worried over crop loss due to floods, delay in arrivals

Coimbatore , Aug. 30

Even as the speculation on the extent of damages caused by the recent floods in Gujarat and Maharashtra to the cotton crops is on, textile mills in the South dependent on import of this natural fibre supplies from upmarkets are worried on the likely impact of crop loss on prices.

The southern spinners say notwithstanding the projected good cotton crop this year, anticipated higher exports of raw cotton and the fear on damages to the crop and the resultant delay in arrival would play spoil sport to the textile industry's hopes on a comfortable raw material situation.

"We are told that overseas buyers have already executed forward contracts to buy cotton from India by offering higher prices this time compared to what was offered last year. As a result, domestic cotton traders have raised the prices for the existing stocks now available with them too, thereby pushing up the costs for the textile mills. The traders are quoting an average Rs 2,000 more a candy for the past one month,'' said Mr K.R. Selvakumar, President of the South India Small Spinners Association (Sisspa).

He said the traders were quoting higher price especially in the light of abnormal rains in major cotton growing areas such as Gujarat and Maharashtra and the adverse condition would also lead to delay in arrival.

Stating the current speculative trend would do good neither to the growers nor the mills but only benefit the middlemen, the Sisspa President wanted the Union Government to put a hold on cotton forward contracts for exports. He said exports can be allowed only after assessing the actual crop size during the current season.

More Stories on : Cotton | Textiles | Industry Associations | Exports & Imports

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