It’s worldwide certified that India is one of the largest producer and exporter of cotton yarn. In 2013-14 season India’s cotton cultivation was estimated at 37 million bales (170 kg each) of cotton which makes India the second largest producer of cotton yarn. According to the Cotton Association of India (CAI), the target of cotton production is about 4 million bales in the current (2014-15) season. China is the top consumer of this product from India. But recently they have reduced importing cotton from India. That’s why India’s export economy feels a negative impact. In this situation, there’s no way to reduce surplus supply. Which creates a massive crisis now. Already CAI has published a press briefing by mentioning government intervention to solve such kinds of problem.
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| Indian cotton collected by a farmer |
CAI has said that in the current (2014-15) season India has 472 million bales cotton (480 pounds per bell) ready to supply. Where 306 millions are their local needs and the rest of 166 million is the surplus for them. As a result the country is in massive crisis now.
GRS President Arvind Patel has said that, China is the main consumer for Indian cotton. Due to huge production of cotton in China and the excess of reserves they have reduced exporting of cotton now. Besides the demands of local Indian factory is too low. Which creates an impact on decreasing cotton import. The government agencies are expected to achieve a huge production in this season due to favorable weather for cotton.
The recession has continued due to reduce the ratio of supply and demand. Currently the price have been drop down at 31 thousand rupees per every candy (35kg per candy). Earlier at the first 20 days of the current month price for every candy have been dropped down at 30 thousand 500 rupees after reducing more than 2500 rupees.
Arun Dalal, one of the traders and exporters has said that the current cotton price is the lowest after (2009-10) season. It will solve when the demand arise again. Due to reduction of price, Supply of cotton also decreased now. At present daily supply have been dropped down from 225 million to 185 million bales per every day. however, due to the decrease in the price farmers are now excluded from the selling of cotton.
The farmers were in huge loss after decrease of cotton price. As a result CCI started to purchase the product at a minimum price from October last year. Already they have collected about 41 million bales till the 1st week of January, which is the highest in last six years. Where the maximum product have been collected from Telangana, Andhra Pradesh and Maharashtra.
Reported by-
Mayedul Islam
Senior Reporter of Textile Tribune
Assistant Chemist
Ha-Meem Group, Tongi, Gazipur, Bangladesh
Email: mayedul.islam66@gmail.com
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