The textile spinning mills in the Coimbatore region have started importing cotton as the prices for the same have increased in the local market as compared to the international market.
While the imported cotton costs around 41,000 per candy, the Indian Raw Cotton cots around 43,000 per candy.
The two leading mills south India recently bought 2 lakh bales each of West African cotton.
Indian Raw Cotton
“The cost of imported cotton is lower by at least 2000 per candy, the quality is also better,” a top official from a leading textile mill said.
“With the import of cotton come better credit facilities and lower interest rates for the mills. Moreover, the productivity of yarn is also good. However, the price rise in the local market is because of hoarding by some traders,” the official added.
While the local cotton prices have increased by 12.9% in April-June, the international market prices have raised to only 6%.
The import for 2015-2016 seasons is likely to cross 15 lakh bales, the industry official stated.
