Several challenges notwithstanding, Indian textile industry now faces the brunt of increase in raw cotton prices by Cotton Corporation of India (CCI) in last few days.
The industry says that since 5 July, there’s been a hike every day from Rs. 100 per candy to even Rs. 400 per candy.
Including additional premium for higher qualities, prices are up in 16 days by about Rs. 3,700 per candy, which is about Rs. 15 per kg of yarn.
The industry is not able to understand the hike and is seeking justification from CCI.
“Justification for rise in prices by CCI is needed? They are the largest stockist of cotton and in end season if they increase fuel prices, then obviously it will lead to high inflation, thereby increasing the woes of a common man,” said MD of a vertically integrated textile company.
“During the last six months, cotton prices have reached an all-time high to almost 50 per cent. Has any other commodity’s price moved up like cotton? This rise in cotton price is horrific and speculative. Why stock limits are not being enforced?” said Rikhab Jain, Chairman, TT Group and veteran textile entrepreneur.
He further questioned why industry associations and their chairman are hesitating to raise their voice? Does it not impact them? Or not to cry until they are severely impacted and await relief after many of them become NPAs. Is it not their duty?
Pradeep Kumar Agarwal, Chairman-Cum-Managing Director, CCI was not available for the comment. We will update once we receive any response from CCI.
It is important to mention here that a month ago it was decided that the Ministry of Textiles will investigate cartelisation behind hike in yarn prices. Textile Commissioner has been directed for the same.