Spinning mills will reduce production as cotton prices skyrocket

- Antenna: Vivek Mehta

- Demand for cotton yarn and fabrics and garments breaks in international market after cotton prices rise

Cotton prices have skyrocketed in the international market. Foreign speculators and companies are booming in the Indian cotton and textile market through the MCX exchange. Arun Dalal of Cotton Market says Life has never seen such high cotton prices. The price of cotton has gone up to a level never reached in the history of 5-30 years. The start of the Rooney season was priced between Rs 2,000 and Rs 50,000. Today, Rs. 2000 to 30,000. The price of cotton candy (5 kg) is Rs. 3000 quotes are being done. Price quotes are believed to be sitting on cotton stocks. Speculators want the price of cotton to be Rs. 1 lakh. New York futures have reached 181 cents. Prices have risen due to speculation rather than demand. International hedging funds have speculated. So prices have skyrocketed. The cotton crop is low, but not so low that prices go up. Therefore, the textile industry demands that if the cotton futures of MCX are banned, India's textile industry will be wiped out. Speculation has done great damage to the entire value chain, including spinning in textiles.

Speculation has led to an increase in the price of cotton, a rise in the price of cotton, an increase in the price of yarn, and a rise in the price of yarn. Demand for cotton yarn and fabrics and garments has taken a break in the international market following the rise in cotton prices. There is limited demand in the domestic market. The Cotton Advisory Board has said that the earlier estimates of more than 20 lakh bales of cotton crop were incorrect and in fact the cotton crop was 5 to 20 lakh bales. Speculators are taking advantage of the difference of 20 lakh bales. The crop has come down but where last year's pending stock disappeared has become a mystery. Speculators are believed to have cornered the goods. A meeting of the Confederation of Indian Textile Industries has demanded closure of cotton deals in MCX and removal of cotton from MCX to curb speculation in the cotton market.

In such a case, the seller has to deposit the increased amount in the payout as the price increases after selling at the bottom of the futures trade. In this case, the speculators try to break the price by taking it higher. If the payout is stopped, the market cools down. Market regulator SEBI can tighten the reins by blocking payouts. Despite having this power, SEBI does not take any steps to stop it. On the other hand, the Confederation of Indian Textile Industries has demanded removal of import duty on cotton. Farmers have dumped their cotton in the Indian market. So falling prices is not a question of declining farmers' income. Local speculators are likely to reduce prices or dump goods in the market for fear that rising imports of cotton will lead to a rise in the price of stored cotton.

As many as 100 spinning mills and 200 textile spinning units in Gujarat are facing difficulties due to rising cotton prices. Saurin Parikh, president of the Spinning Association of Gujarat, says the high price of cotton has pushed up the price of his yarn. So the market does not meet. Demand is not seen in the international and national market due to the price of yarn. So the spinning mills have decided to cut their production by 50 per cent. Rahul Shah of Ahmedabad's textile sector also echoed his sentiments, saying rising cotton prices would cut spinning mills by 15 to 20 per cent. At the current price of cotton, it is difficult to make cotton yarn and sell it in the market. Rising spinning at this price of cotton does not remain viable. The spinning mill is likely to come to Las. Gaurang Bhagat, president of Muscati Textile Mahajan in Ahmedabad, says the rise in cotton yarn prices has pushed up fabric prices. In the processing of shuttag, rayon, dress material, the price per meter is Rs. 2 has increased. The shooting price is Rs. There has been an increase of 12. So sales have taken a break. Some have housewives while some do not have housewives at all. The processor will charge another Rs. Going to increase by 3. As a result, prices have risen at all levels in the textile segment.