Textile companies demand ban on cotton futures, reason for sharp rise in prices

Demand for ban on cotton future

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While domestic cotton prices have more than doubled in the last one year, cotton yarn prices have also seen a sharp jump.

Government and private companies in the textile sector cotton ,Cotton) has demanded a ban on Future. The companies allege that the effect of speculation is being seen in the prices of cotton and futures (FuturesBecause of this, the prices of already expensive cotton are increasing further. Financial Express has written in its report quoting sources that the companies are demanding a ban on the export of cotton as well. At the same time, some companies are demanding that the government come out with a long-term strategy on raw materials, which includes imposing export duty to maintain domestic supply. Domestic cotton prices in the last one year (Cotton Price While the prices of cotton yarn have increased more than double, there has also been a sharp jump in the prices.

Advice on building strategic reserves

Along with this, the industry has advised that the government should set up a strategic stockpile under the Cotton Corporation of India to control the prices of cotton and have a stock of 10 million bales. This reserve will help in controlling the rise in prices. According to sources, all these suggestions have been sent by the industry to the government. According to sources, Textiles Minister Piyush Goyal can consider these suggestions after coming back from abroad. Piyush Goyal is currently in Davos to attend the World Economic Summit and he will return to India this week. Earlier in December 2021, SEBI had banned futures options in 7 commodities, gram, mustard, crude palm oil, moong, paddy (basmati), wheat, soybean for one year, although there was no ban on cotton.