Cotton arrival drop by 30% from its usual 90%: SIMA

Coimbatore, May 30 (KNN) The arrival of cotton during the current season was less than 60 per cent as compared to its usual arrival during the season which is 85-90 per cent, said, Chairman of the Southern India Mills’ Association (SIMA) Ravi Sam.

“The abnormal month on month kapas price prevailed during the previous year made the farmers and kapas traders to hold over 47 per cent of the cotton with a hope of abnormal price increase despite the cotton corporation of India’s announcement regarding the closure of MSP operations on March 31,” he said.

Kapas cost is Rs 9,000 per quintal between December and February last year despite daily arrival rate of 1.32 to 2.2 lakh bales and its cost increased to Rs 11,000 per quintal in April 2022, as per SIMA.

The daily arrival rate during the peak season was the lowest during the current cotton season with just 1 to 1.3 lakh bales.

Sam said, “The global cotton price fell from 118 to 164 cents per pound between October, 2021 and May, 2022 and has already gone below 100 cents per pound, generating a panic situation in the cotton value chain.”

“The Indian cotton trade took an advantage of the 11 per cent import levy and kept domestic prices up by 8 per cent to 15 per cent. This was the primary reason for the considerable decrease in cotton textile and garment exports,” he said.

He also said that the global cotton season would begin in August and that cotton prices would remain stable in the coming months.

However, cotton scarcity may occur at the end and beginning of the season until new cotton comes, he added.  (KNN Bureau)