India Cotton Price Collapses And Hits Cotton Mill

2011/5/18 17:12:00 57

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Cotton prices in India fell by 30% in two months, resulting in the closure of 50% of the ginning plants in Gujarat.

Cotton prices have fallen recently.

Cotton gin plant

A fatal blow. The cotton mill rolled the cotton into a bag.

Due to price shocks, about 50% of the ginning plants in Gujarat have closed down, and Gujarat is the largest cotton producing and exporting country in India.

Most cotton mills expect cotton prices to rise.

Two months ago, cotton prices in Mumbai were 63000 rupees, and now plunged 30% to 43000 rupees.

Cotton was the best asset in 2010.

Rate of return

More than 60%.

Cotton mills buy cotton when the price of cotton is as high as 60000 rupees / candy.

They expect cotton to rise to 65000 rupees.

But the price slump led to their cotton.

Stock

Depreciate by 25%.

In order to force the government to expand the export quota, the cotton mill began to strike indefinitely from last Sunday to protest against the 5 million package export ceiling set by the government.

There are 1000 flower ginning plants around Saurashtra Tel and Gujarat.

Before the strike, 70% of the ginning mills were forced to close, and the rest of the ginning plants started 3 to 4 days a week.