Centre likely to decide on cotton exports next week |
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Dilip Kumar Jha & Vimukt Dave / Mumbai/rajkot November 12, 2010, 0:47 IST |
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Industry, textile ministry for freeze, as global prices rise.
A meeting next week in
The Union government has already allowed export of 5.5 million bales (a bale is 170 kg) and there is a proposal to allow a further 2.5 million bales. However, the textile ministry has taken the industry’s side in opposing this and is not in favour of allowing further exports till the supply situation becomes clearer.
Expecting further export permission, market prices have shot up to above Rs 46,000 a candy (356 kg) in Mumbai and Rs 47,000 in
The thinking within the textile ministry is that a decision on exports should be postponed for a month or so, by when the supply-demand situation will be known. So far 4.5 million bales have arrived in the market, 25 per cent more than at this time last year. Around 10 million bales are expected by November-end and a further eight million bales by mid-December.
Arun Dalal, an Ahmedabad-based trader, said, “Exports of cotton should be allowed but only after satisfying the needs of domestic textile industry and other users.”
High global prices
“Cotton prices in
On the ICE futures, cotton for near-month delivery hit a record high at $1.5123 per pound yesterday in late evening trade, a rise of five cent from the previous day. The US Department of Agriculture (USDA) recently lowered its global output estimate to 115.25 million bales from 116.7 million bales a month before. According to it, stockpiles will decline to 42.2 million bales this year, the lowest in 15 years.
Textile manufacturers in
The Cotton Advisory Board, at its last meeting, forecast
S K JINDAL (SR.G .M)
GINNI INTERNATIONAL LIMITED
NEEMRANA(RAJ)
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