Indian textile mills urged not to panic on cotton status

The Indian Cotton Federation (ICF) has urged mills not to panic on negative reports on domestic cotton status, saying the situation is comfortable. 

According to ICF president J Thulasidharan, the area under cotton for the 2017-2018 season is around 124.29 lakh hectares and favourable monsoon and pest control measures are likely to result in higher production.

Cotton availability in terms of quality and quantity would be much better during the current season, a top Indian business daily quoted him as saying.

The damage due to pink boll worm would be lower compared to last year and the area under Bt cotton had increased to more than 12.5 per cent compared to 5-7 percent earlier.

Thulasidharan requested traders to avoid speculating on production estimates that lead to hike in domestic and international prices.

Indian cotton prices are 10 per cent lower than international prices. The 26-28 per cent raise in minimum support price for cotton for the season and more area under cultivation are expected to yield more, he added.