INDIA: Cotton economy unlikely to recover in short term’ – Commodity expert
Sagging cotton prices and production remain the key factors for negative growth in agriculture GDP and had grains, pulses, cotton, and oilseeds been taken into calculation of GDP in totality year on year, the numbers would have been worse.
This was revealed in an exclusive interview to fibre2fashion by Mr Biren Vakil, Commodity Consultant, Paradigm Commodity Advisors, while commenting on the negative growth in agriculture GDP.
He added by saying that, “As global commodity prices are in secular decline and there is total demand collapse in Chinese and Asian textile sector, cotton economy is unlikely to recover in the short term, thanks to the good Australian cotton crop”.
The other factors which will impact recovery in cotton economy is the overall weakness in the textiles and apparel sector and though off course, global cotton market may see anemic recovery in the second half of 2009, said so, Mr Vakil.
He observed by saying, “Domestic supply of cotton is down by 25 percent at around 27 million bales. Domestic prices may bottom out in the first half of the current year, but chances of sustainable recovery are slim in near futures due to weak demand”.
Added: March 5, 2009 Source: Agencies