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Related Keywords: benchmark rates, bring transparency in the price discovery mechanism, CAB, CAI, cotlook index, cotton price index, cotton production, curb speculations across various markets, domestic and international, four different sources, futures, ICF, India plans to launch, MCX, spot, tracks delivered price of American cotton in China, trading platforms

India, in its attempts to curb speculations across various markets and trading platforms, and bring about further transparency in the price discovery mechanism is planning to launch a cotton price index of its own for which it will be taking into account benchmark rates from four different sources.

Related Keywords: account forty six percent of total installed spinning capacity, CAB, capacity of up to twenty five thousand spindles, educed production by about fifteen to twenty percent, losses continue to mount, sharp rise in cotton prices, SIMA, small and medium textile mills in Tamil Nadu, Tamil Nadu textile mills

Following the sharp rise in cotton prices, small and medium textile mills in Tamil Nadu (TN) with a capacity of up to 25,000 spindles have reduced production by about 15%-20% since the beginning of the month as losses continue to mount. Tamil Nadu textile mills account for about 46% of the total installed spinning capacity in the country.

Mills are losing about Rs 15 per kg on yarn. This has come even after two rounds of price increases by mills that resulted in yarn prices going up about Rs 20 per kg since April.

Related Keywords: CAB, Cotton imported from Australia, cotton production, especially in Gujarat, Gujarats benchmark cotton variety, jump in price, largest cotton growing state, Lift in cotton prices, lower acreage, new season arrival, scanty rainfall, Shankar-6, short supply, slower pace of sowing, Sowing affected in the wake of less rainfall

Lift in cotton prices seen due to short supply and a slower pace of sowing. Another factor responsible for the rally in prices is scanty rainfall, especially in Gujarat, the largest cotton growing state in India. The state has a rain deficit of more than 50% in the first week of July. Sowing has been affected in the wake of less rainfall. Cotton acreage is likely to fall this year.

The Cotton Advisory Board (CAB) under the Union textile ministry had projected cotton production of 101 lakh bales for 2015-16 for Gujarat.

Related Keywords: CAB, Cotton prices recorded over 5 percent gain, current cotton prices rise as temporary, current crop year, following sharp decline in output estimates, hit fabric and garment manufacturers profit margins hard, non availability of good quality cotton, supported the move, Textile mills, Traders are estimating cotton output to decline further

Following a sharp decline in output estimates for the current crop year, prices of cotton have recorded over 5 percent gain after bottoming out on March 23. Non-availability of good quality cotton has also supported the move immensely.

Traders are estimating cotton output to decline further to 31 million bales (170 kg each). Some go down further with the fibre output forecast at 30 million bales for the current season.

Related Keywords: CAB, CAI, cotton corporation of India, export of cotton to Bangladesh, global tender, growing domestic demand, ICAC, logistics better and easier, plans to tap Vietnam, reworking pricing strategy, SIMA

The Cotton Corporation of India (CCI) has finally decided to come out with global tender for export of cotton to Bangladesh. CCI chose Bangladesh as the logistics are better and easier to manage either by the sea or roadways. China, the world’s biggest buyer, is importing less of the fibre from this year which has affected Indian export.

China has been the largest importer of Indian cotton over the last three years. According to CCI CMD BK Mishra, the response from Bangladesh has been good and should this sale be successful, CCI has plans to tap Vietnam as well.