Soaring cotton prices hinder the development of India's textile industry
The Indian Cotton Advisory Committee estimated on May 17, 2008 that cotton production in 2007-08 was 31.5 million bales. The Indian textile industry uses cotton as the main raw material. From 2003 to 2007, the textile industry performed very well, mainly because the country’s production of high-quality cotton is sufficient. But in 2007-08, in addition to many other factors, such as the sudden appreciation of the rupee against the US dollar, the increase in bank interest rates, a major decline in the domestic and export markets, and abnormal cotton prices, the performance of the textile industry has completely collapsed, even the best textile The factory is also losing money. In a press release, Shri J. Thulasidharan, Chairman of the Southern Textile Mills Association of India, called on the government to immediately intervene and take necessary measures to help the textile industry benefit from domestically produced cotton. Because of China's lack of cotton, many countries are engaged in international cotton speculation. They buy a large amount of Indian cotton. Some related organizations in India have proposed measures to control cotton prices since the beginning of the year. He said that if the current trend continues, all spinning mills will be closed. ShriThulasidharan said that Shankar-6 cotton produced in Gujarat is usually used to produce 40s cotton yarn. The price in 2006 and 2007 was 19,000 rupees/candy, and the current price is 23,500 rupees/candy, an increase of 24%. In 2006, the price of a skein of 4.54 kg of 40s cotton yarn was 568 rupees, in 2007 it was 558 rupees, and now it is only 553 rupees, which is 1% lower than the average price in 2007. Similarly, J-34 cotton is usually used to produce 20s cotton yarn. The average price in 2006 was Rs 16,500/candy, and the price in 2007 was Rs 18,000. The current selling price is Rs 20,500, an increase of 14%. In 2006, the 20s skein produced with J-34 cotton sold for 432 rupees, in 2007 it sold for 431 rupees, and now it is sold for 447 rupees, which is 4% higher than the average price in 2007.