Indian cotton prices, which have remained range bound for one-and-a-half months, are expected to increase by about 3 per cent once the cotton-based yarn, fabric and textile industry, thrown out of gear post-GST, resumes work in full swing in a couple of weeks. “Cotton selling declined by about 30-40 per cent after the new tax code came into force. We hope revival in demand after the cotton-based industry comes back to normalcy,” said a Maharashtra-based ginner, who did not want to be identified. ..
Current cotton prices are ruling at about Rs 43,500 per candy and are expected to rise by aboutRs 1,000/candy to Rs 1,500/candy, up by about 2.5-3.5 per cent, after the trade adjusts to GST and demand streamlines. The goods and services tax (GST) has taxed fabric, which was never taxed before, at 5 per cent. Opposing this tax, cloth traders from Surat, the main hub of synthetic cloth business in the country, have gone on strike. As a result, cotton demand from the entire value chain has declined ..