Before exploring the cotton rate today, let’s take a look at the uses of cotton and its role in the textile industry. The cotton plant is a shrub that is native to the tropical and subtropical regions across the world. India is among the top cotton-producing areas of the world, among the Americas, Africa, and Egypt. Apart from its extensive use as a fabric for garments, cotton seeds are crushed to produce oil.
Benefits and Uses of Cotton
Investors are expected to benefit from their investment in cotton commodity as cotton is used extensively across the world as a natural, breathable textile fibre in the textile industry. Cotton prices in India are expected to rise due to growing demand for the commodity from global economies such as China. Also, markets in emerging countries are expected to experience a substantial increase in their demand for cotton garments and cotton products, and consecutively, a rise in the cotton rate.
Between January 2019 and September 2019, the cotton price in India has been in the range of Rs. 110 to Rs. 133 per kg. Cotton prices have been on the decline since August 2019, primarily due to a drop in the international cotton rate. However, with the local cotton market rate still being higher than the international prices, the import of cotton is expected to increase. This might cause a drop in the cotton prices in India.