"The rising prices of cotton at International market are not an aberration, but beacuse of the huge demand for quality cotton. It would stay at higher level for some more months," ICA president Ray Butler said.
However, the prices are expected to ease after the arrival of new crop, which could be only in the month of October-November, depending on the volume of the world cotton output, Butler said on the sidelines of a seminar on cotton organised jointly by South India Cotton Association and Southern India Mills Association, also for an interaction with ICA delegates.
When asked about the projected world cotton crop in 2011-12, he said that it could be around 27.6 million tonnes, an increase of 3.5 million tonnes over the production of 2010-11 and the consumption would also likely to witness an increase by 4.4 per cent to about 26.4 million tonnes.
On India's contribution to the world cotton market, Butler said that since the country itself required huge quantity of cotton, both for domestic consumption and for exports, India has to depend on imports in near future, particularly for quality cotton.
When asked about opening an arbitration centre or cotton-testing laboratory in India, particularly down South, which consumed more than 50 per cent of the cotton required in the country, Butler said that ICA was aiming to open such centres across the world and there was no (no) reason why South India should be omitted.
The suggestion from a few cotton users to open a testing lab in Coimbatore would be put forward for consideration of the ICA Board, Butler said. For the latest updates PRESS CTR + D or visit Stock Market news Today
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