Economics

AHMEDABAD: The minimum balance stock of cotton will slide down to 35 lakh bales in the current play season, putting price pressure on domestic mills that dedicate `50,000 per candy (a candy weighs 356 kg). The ending stock that has already lessen down to 44.5 lakh bales (each of 170 kg), way below the mandated 50 lakh bales, would further fall owing to late crease arrivals and possible exports, a senior textile ministry official has indicated. 

thither is no bloody stock (cotton) in the food market, said a ministry official privy to the arena. The cotton-dependant $62-billion Indian textile and clothing sector will carry 329 lakh bales of crop this season. Of that, 58.5 lakh bales consecrate already been exported while the ending stock selected to keep abreast a healthy balance, has come down to 44.5 lakh bales. That qualification eventually fall to 35 lakh bales, the official said. 

like supplies have not kept up with expectations. So far, 162 lakh bales have arrived in the market. Although the supplies are better than last crop year when 152 lakh bales had arrived by this time, the expenditure by Indian mills has gone up significantly. Mills now command about 25 lakh bales of cotton per month against 20-23 lakh bales about a year ago.



 

Prices rule high at `50,000 per candy because of the shortage of the crop, textiles secretary Rita Menon told ET. The Cotton Advisory panels (CAB) estimate of an ending stock of 44.5 lakh bales is generous. We need a minimum stock balance to last cardinal and half a months which make it 60 lakh bales. 

The textile ministry is adamant that a balance of 55 lakh bales mustiness be maintained as an ending stock. But, with the Directorate universal of Foreign Trade issuing fresh licences to export 19 lakh bales, the exports have exceeded 58 lakh bales, sqeezing the ending stock, she added. 

Prices have jumped 40% in one week ever since the market is speculating a shortage in supply for local consumption owing to exports. With bilateral pressures mounting from...If you want to get a full essay, order it on our website: Orderessay



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