Cotton increased on export demand.
After Central government allowed cotton export, demand for export started to increase moving up the cotton price by Rs 200-300 per candy in Gujarat.
The government had decided to allow further cotton exports for 2011-12 marketing year ending September, on the back of higher production estimates.
India has asked the state-run Cotton Corporation to maintain a buffer stock of 1 million bales between June and August, said in a government statement. It said the buffer stock is to be used for supplying local textile mills in case they faced a shortfall.
Meanwhile, the textile industry feels that the government's decision to allow cotton exports will lead to a rise in its prices and a decline in domestic availability. The textile sector also fears that the rising cotton prices would put further pressure on margins of companies which have still not come out of their sluggish phase.
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|Publication:||Pakistan Textile Journal|
|Article Type:||Brief article|
|Date:||Jun 30, 2012|
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