Space Rocketing Cotton and Cotton Yarn prices – Representations pending for Government action
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07 January 2022, Mumbai:
Secretary, Textile Ministry and all relevant Authorities, the problem of space rocketing Cotton and Cotton yarn price remains unsolved.
Even yesterday, Textile Secretaries group has also warned Cotton segment as well as speculators but immediately after news was flashed about the warning, speculators became active and within a minute MCX shot up by 500 points plus. They have not taken warning in the right way, and speculators have assumed that government action will not be significantly impacting them if any.
Yesterday I come across copy of MCX Cotton Monthly Report of January, 2022. I hereby quote the report of MCX Cotton Month Report of January, 2022 about cotton market.
QUOTE: MCX REPORT
MARKET HIGHLIGHTS
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After buoyant 2021, cotton prices to spin down in 2022 The year 2021 has turned out to be one of those rare occurrences for the entire cotton sector, when almost all of the value-chain participants could make extraordinary returns.
The gains ranged from a healthy 44 per cent to an exuberant 105 per cent, giving a reason for cotton growers, ginners, spinning units, garment makers and exporters to bid a cheerful adieu to 2021. According to Vinay Kotak, Director, Kotak Ginning and Pressing Industries, "It can be said that this was one-of-a-kind year in many years that entire value chain has made money".
The factors influencing the price include excessive rains, delay in harvest and late arrivals, while a strong revival in demand from spinning
makers further fuelled the prices during the year.
UNQUOTE
From the above anybody can understand that speculators, dealers, Cotton traders have made mountain of money. MCX report is falsely mentioning that entire textile chain has benefited hugely during the F.Y. 2020-21. This is a wrong statement. Yes, it is true that textile chain upto Spinning segment have enjoyed super-super profit which they have never dreamt even in last 100 years.
From the above statement, it is clear that spinners, cotton traders, cotton ginning factories and perhaps farmers and speculators have minted money at the cost of Fabric, Powerloom, Handloom, Garments, Apparel and Home Textile segment.
They have taken the textile chain starting from fabric onwards to a bumpy ride, this needs to be curbed immediately. Speculators activities need to be curbed immediately by barring cotton trading access officially and unofficially in any form.
It should be curbed immediately by barring commodity trading in MCX. Strict action must be taken against such offending speculators.
I volunteer to pass on this valuable information so that all representations in future can take note of this thing. Authorities needs to be apprised as above.
I hope this would help to resolve the problem by strict government prohibition of Cotton Trading on MCX and NCEX and action as early as possible.
Contributed by: Dr. Rikhab C. Jain, Chairman-T T Limited
(The news article has not been edited by DFU Publications staff)
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