Indian cotton prices are ruling firm above Rs 65,000 a candy. In view of the firm trend in prices, which are 20 per cent higher than global rates, the natural fiber consumption will likely be lower.

Indian cotton consumption is expected to decline by nearly 27 lakh bales. Arrivals are low as farmers are holding back the produce. Over 125 lakh bales of cotton have been harvested. But hardly 50 per cent of the harvested crop has arrived in the markets. Farmers want prices like last year.

Cotton arrivals till now from October 1 are 57.98 lakh bales compared with 98.31 lakh bales a year ago.Arrivals are lower in all cotton-growing states this year.The high prices for cotton are deterring the textile industry. Spinning mills are working at 50 per cent to 70 per cent capacity. Since domestic prices are ruling over 15 per cent higher than global rates, the industry wants 11 per cent import duty on cotton to be scrapped.

Import duty removal is expected to play a crucial role in determining the competitiveness of the value chain in immediate future order bookings for apparel exports. This is one of the primary reasons for the decrease in the export of cotton yarn, cotton, and cotton fabric.