Coimbatore, Mar 26 (KNN) The Southern India Mills' Association (SIMA) has warned that speculation is fuelling the current high cotton prices rather than market fundamentals.

SIMA has urged textile mills to rely solely on the cotton production estimates published periodically by the Office of the Textile Commissioner under the Ministry of Textiles.

In a press release on Sunday, SIMA Chairman SK Sundararaman stated that the Committee on Cotton Production and Consumption (COCPC) formulates more realistic estimates after detailed deliberations involving various bodies representing the textile value chain.

The COCPC's estimates are based on primary data collected directly from the industry as well as cotton crop estimates provided by the Department of Agriculture from all cotton-producing states.

Sundararaman advised cotton textile mills, as the actual users of the crop, to disregard other sources and only consider the authoritative estimates released by the textile ministry's office. He emphasised that the cotton prices are currently being inflated by speculation rather than being an accurate reflection of the supply situation.

The SIMA chairman underscored that the ministry's estimates, prepared through a comprehensive process factoring in on-ground realities, offer the most reliable projections for the industry to plan procurement and operations. Textile mills were cautioned against basing decisions on unreliable data circulating from unverified sources.

(KNN Bureau)