News Tags

Related Keywords: cotton, Cotton Association of India, cotton crop, cotton season, cotton supply, export, farmers, India, production, Slow growth in domestic consumption

Cotton Association of India (CAI) has released its March estimate of the cotton crop for the season 2018-9 beginning from 1st October 2018. The CAI has estimated cotton crop for 2018-19 at 321 lakh bales of 170 kgs each which is lower by 7 lakh bales than its previous estimate of 328 lakh bales made during last month.

Related Keywords: adversely impact demand, adversely impacting yarn demand, domestic cotton prices, export competitiveness of Indian yarn, export prospects, ICRA, likely to get hit, Profitability of spinning companies, second quarter of this FY, Slow growth in domestic consumption, stagnation in exports, surpassing international cotton prices

The profitability of spinning companies in the second quarter of 2016-17 likely to get hit, with domestic cotton prices surpassing international cotton prices, adversely impacting the yarn demand and export prospects for the spinning industry, ratings agency ICRA said.

Domestic prices of ginned cotton have increased significantly—from about Rs 90-92 per kg in April to around Rs 122 per kg now. Slow growth in domestic consumption and stagnation in exports are likely to adversely impact demand and export competitiveness of the Indian yarn, the agency said.