The Central Government has been urged by the Southern India Mills’ Association (SIMA) to extend the exemption from the 11 per cent import tariff on cotton through October of this year, just as it did from April to October of 2022.
The current season’s arrival of cotton, according to SIMA Chairman Ravi Sam, was less than 60 per cent as of 31st March compared to the historically average arrival of 85 per cent to 90 per cent. He claims that despite Cotton Corporation of India’s announcement that MSP operations would cease on 31st March 2023, the irregular month-to-month kapas price that had been in effect for the previous year had caused farmers and kapas traders to hold over 47 per cent of the cotton in hopes of a price increase.
Meanwhile, over the past week, cotton prices have significantly dropped by about Rs 3,000 per candy. Lower cotton prices, according to market analysts, will boost domestic demand and improve the competitiveness of Indian cotton yarn producers on the global market. Additionally, as a result of the lower cotton prices, ready-made clothing prices will also fall, providing consumers prices that are at least 10 per cent lower than they were during the previous Diwali season.
Jayesh Patel, vice-president of the Spinners’ Association Gujarat (SAG), stated, “Indian cotton was more expensive than the international market, resulting in lower demand. Farmers, expecting higher cotton prices, had held back their stock, but they have now started selling, creating selling pressure and leading to a significant decrease in cotton prices.”
