While high cotton prices left the Indian textile sector traumatized in 2008-09, the fresh spiral is tightening the noose around the industry in the new crop year, which began in October. Cotton production is anticipated to be a mere 260 lakh bales in 2009-10, down from 290 lakh bales  last crop year. Further, with Shankar-6 variety already crossing Rs.25,000 per candy, the hopes of revival seem bleak for the textile sector that lost close to a million jobs to phenomenally high cotton prices (43% hike in MSP) last season. Fresh arrivals of cotton in the market and status quo on the MSP in 2009-10 have done little to soothe the sector still recuperating from the breakdown. Despite 1.3 lakh bales arriving in the markets every day, high prices of Shankar-6 have unnerved the industry.

While cotton prices come down by at least Rs.1,000 to Rs.1,500 per candy during October-November after fresh arrivals, the current season has seen prices go up by almost Rs.2,000 per candy, said Chairman of the Southern India Mills’ Association (SIMA), Mr.J.Thulasidharan.

(Economic Times – 9.11.2009)