Import Of Long Staple Cotton Continues

12-Jun-2013

While export of cotton is rising, import of long staple cotton is continuing, despite high import cost due to rupee depreciation.



The landed cost of extra long staple at Indian ports is Rs 66,275 a candy (365 kg), but some mills are insisting on cotton yarn produced from US and Egyptian cotton, as it is of better variety. South Indian mills find it more viable to import cotton from Africa, as it is cheaper for them to import than have cotton transported from Gujarat or Maharashtra. The contamination level is lower in imported cotton.



"Indian mills are expected to import another eight to 10 lakh bales this cotton year, as it is cheaper for them to import cotton," said Shirish Bhai Shah, a Mumbai-based trader.



Till the end of the current cotton year, another 800,000 to one million bales are likely to be imported. So far, 1.2 million bales of cotton have already been imported. "Southern mills prefer importing cotton, as the landed cost of African cotton is cheaper than buying cotton from India itself," said Rahul Kotecha, a Coimbatore-based cotton indenting agent. The current price of cotton in the Indian market is around Rs 11,107 a quintal, while cotton imported from Africa costs around Rs 10,777 a quintal.

Source:-www.business-standard.com