Related Keywords: cotton MSP on the textile industry, pink bollworm infestation in the cotton crops, rising cotton prices
Rising cotton prices following the pink bollworm infestation in the cotton crops, has affected margins to major textile players by ~150 bps this year. The textile sector, which contributes ~4% to India’s GDP, is one of the largest source of employment generation in the country and it accounts for ~14% of exports
Players like Vardhman Textile Ltd started hedging on Multi Commodity Exchange of India Ltd. (MCX) to cope up with the persistent volatility in cotton prices
