reasons for cotton prices hikes.?
what are the reasons for going yarn prices up and up in india ? even the export of cotton is same in volume of quantity..
At a time when the J&K economy has come under severe stress in the wake of continued curfews and shutdowns, many of its industry segments using cotton as raw material are all poised to get another beating.
According to reports the world prices of cotton have spiked in recent weeks. Blaming floods in Pakistan for heating up the global cotton market, experts and people associated with different industry segments here believe Kashmir would have definitely its share in the pie.
Pertinently, Pakistan is the world’s fourth largest producer of cotton and the recent worst floods that have inundated 1/5th of its geography have devastated the spiraling cotton fields in that country.
Experts and traders here said the price hike would affect many industry segments in Kashmir. “Apart from the general price hike in the textiles that we import worth rupees hundreds of crores every year, the cotton price rise would increase the input costs for many of our industry segments,” said Muhammad Subhan, an exporter.
He said the decline in the cotton production would thin its supply in the market thereby pushing the prices up. “Unfortunately, the units using cotton as raw material here do not get any subsidy from the government in Kashmir. This is going to make their products costlier in the market,” he said.
According to experts the cotton in raw as well as in the processed form is used by many craft units in Kashmir. “We require a huge quantity of cotton for making quilts, beddings, pillows etc. There remains a huge demand for these items especially during winters in the Valley,” said Ali Muhammad, a craftsman.
He said once the cotton prices were up, the input costs of these items would naturally increase, which in turn could affect the demand.
Muhammad said there were a lot of new products coming in the market from outside which served as substitutes “to our locally produced quilts, beddings, etc.”
“If the prices continue to go up, the outside products will gobble down a lot of market for the locally produced goods,” he said.
Experts said a large amount of cotton is imported in the Valley for making Namdas (inexpensive floor coverings), Gabbas, popularly known as common man’s carpets, mostly made in villages in South Kashmir’s Islamabad district.
Experts said Dosooti, a heavy cotton with double twisted yarn, that is being produced by a few government run corporations here also required large amount cotton. “Besides, Samba in Jammu region produces good amount of cotton sheets locally known as masnads or jamjamswhich use cotton as inputs.”
Cotton prices likely to go up further from here: Alok Ind
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A study of some problems of the Indian textile industry, replies to the questionaire of the Indian Tariff Board inquiry into cotton, cloth and yarn prices … |
