What are the reasons for this abrupt increase in cotton prices across the world?
Please explain? Ans. Mr. Srinivas Kodali (ED, Priyadarshini Spinning Mills) replied that there could be several reasons. There is speculative buying in the futures by commodity hedge funds. Prices are therefore based on speculation instead of actual supply and demand. Also there is holding by traders in anticipation of further increase. Mr. Manoj Kumar Tiberwal of Gangotri Textiles also commented on future trading and speculative hoarding supported by big funds to be the reason for steep increase in price. Mr. V.B. Sutaria (Director Marketing, NTC) assisted with his comments on unstable political situation in Pakistan leading to an imbalance in cotton trade. Pakistan itself is importing cotton yarn, even though the country being a large producer of cotton crop. Q. What are the measures taken by your company in order to compete with increase in prices? Ans. Some of the well organized mills like Priyadarshini spinning mills have taken up ginning activity. Mr. Kodali commented that they h
