/EINPresswire.com/ International cotton prices may be heading north again after news from India banning the export of cotton.
International cotton prices may be heading north again after news from India banning the export of cotton.
Reuters news service has reported India’s Directorate General of Foreign Trade ordered the export ban today to conserve supplies for mills in India.
There have been no reports on how long the ban will last and if the ban will effect the wholesale t-shirt market. This is the second time in nearly two years that India has banned cotton exports.
In January, India’s Cotton Advisory Board reduced the estimated size of the cotton harvest to 34.5 million bales from 35.6 million bales. The board could cut the estimate further, cotton trader Arunbhai Dalal told Reuters.
The U.S. Agriculture Department has estimated that India would produce 27 million bales and export 6.25 million bales by the end of the 2011-2012 growing season. The U.S., the world’s largest exporter, was predicted to produce 15.7 million bales and export 11 million bales. The agency’s next report is due Friday.
Although this news has affected the price of cotton it is a long way off the $2.00 a pound price tag of last year that was the result of a major cotton shortage, which in turn led to panic buying and an over inflated market
The price of cotton has dropped significantly since then to around 90 cents but t-shirt printing companies shouldn’t expect the cost of wholesale t-shirts to follow the trend. MD at t-shirt printing company Buytshirtsonline Ltd Gary Firth said today “Last year as cotton supplies ran low The major apparel companies bought as much cotton as they could at premium rates, this has left them with huge stocks with a higher than value price”
Also cotton prices aren’t the only factor in the cost of producing t-shirts . With fuel prices and the cost of labour rising it is unlikely that any of the major suppliers will start to cut their prices and it is more likely that prices will start to rise again
This news is disappointing for those involved within the t-shirt printing industry especially to companies who are reliant on councils and other government bodies that are cutting their budgets. Gary Firth is still optimistic about the industry trading conditions. “You can still find bargains out there in the blank apparel market. We have Fruit of the Loom American heavy cotton t-shirts for sale from just 89p and they are selling like hot cakes”
It is to early yet to see what the effects of Indias cotton ban will have on the world market. It maybe that other markets like the USA and Pakistan will be able to keep the world clothing market supplied. It may also be that India decides to lift its export ban soon, leading to cotton prices to fall again
Buytshirtsonline Ltd is a t-shirt printing, and wholesale t-shirt company based in Runcorn Cheshire. They stock fruit Of The Loom, Gildan, Hanes and Stedman. Most items are available for next day delivery.
Dan
Buytshirtsonline
01928579951
http://www.buytshirtsonline.co.uk
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