Low Indian cotton prices, weak demand and increased sowing worry traders, industry.

Domestic cotton prices are 16% below the international rates and traders are worried that prices may come under further pressure due to weak demand and increased sowing this season.

Industry and trade associations allege that “excessively high” estimates made by the United States Agriculture Department(USDA) have increased pressure on Indian cotton prices.

According to CAI, cotton is selling at Rs 35,000 per candy (of 356 kg each) in the Indian market while imported cotton is available for Rs 42,000 per candy.

"We are finding it tough to export cotton and cotton yarn due to wrong projection by USDA about Indian cotton carry-forward stocks. Indian cotton exporters and Indian spinning mills and garment manufacturers have to bear huge losses,” CAI president Atul Ganatra said.

“The difference is very big between the estimate by USDA and the Cotton Advisory Board. So Like China, we want the government to look into the matter and ask USDA to take cotton production and cotton consumption and stock figures estimates from CAB."

Ganatra said, "If figures are not corrected then in the coming new season we will see huge losses to Indian cotton growing farmers also."

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