India cotton prices surge ₹60,500 as mills seek duty review
Business
Cotton prices in India just shot up: Shankar 6 cotton, mainly from Gujarat, is now ₹60,500 per candy (that's up 8.5% from last month).
This spike comes as production estimates for this season have dipped to 291 lakh bales, and supplies are running tight.
Cotton demand set to outpace supply
The textile sector is feeling the squeeze, since demand is set to outpace supply this year.
The Southern India Mills Association wants the government to rethink import duties to help ease the crunch.
As Chairman Durai Palanisamy put it, "There is an urgent need to review the import duty on cotton as there is shortage of cotton in the country, affecting the textile industry, which is the largest consumer of cotton."