Speculation plays big role in Indian raw cotton prices'

摘要

Indian raw cotton prices, particularly the Shanker-6 variety has increased from ￥39,000 to ￥55, 000 for candy (356 kg) in last two months. According to industry representatives, the cotton prices in the country are driven by speculations rather than strong demand and fundamentals. President of Northern India Textile Mills' Association (NITMA), stated that, the main reason for increasing cotton price is hoarding of cotton by speculators. Most of the spinning mills are having below one month stock and their panic buying is increasing cotton prices. Stocks to use ratio of cotton in the country should be minimum 3 months. Otherwise, any delay in crops due to factors including rains will create an artificial scarcity and cotton prices would go up, he opined.