Recent increase in cotton prices has become a cause of concern to the textile industry, the main consumer of cotton. Rates are likely to remain high next season due to China imports. Cotton stocks with small and medium-scale mills are likely to remain low affecting those who buy for daily needs. The mills that had bought cotton at the beginning of the season are likely to benefit now. These mills fear that he prices might go up further as the season ends, affecting the entire textile value chain.
Apart from price, the mills also faced quality issues in domestic cotton this year. Further, the industry fears that prices might remain high next season as well as China was importing cotton. According to textile mills, the higher cotton prices reflected on yarn prices. For, some yarn varieties, the prices had increased by 15 per cent