People fond of shopping for apparel, should get ready to shell out more money. The garmenters will soon be charging higher prices as the prices of cotton, which is the biggest input for apparel will be higher.
The cotton prices might go up due to the low rainfall for sowing seeds and diverted farmer’s interests. The market analysts have said that the cotton prices for the upcoming weeks might move higher in the domestic commodity market due to the increased buying by the textile mills and yarn makers on the lower arrivals.
The cost of cotton could rise as the harvesting season ended and the lower rainfalls across the cotton growing region has delayed the sowing process. Reports say that the price of the commodity in the spot market has increased by Rs. 200 – Rs. 300 per candy which is 356 per KG.
The low rainfall forecast for India is responsible for pushing the price of the commodity as the weak rains is delaying the sowing process. The Indian Meteorological Department said that India has received 24% less rains in the ongoing season since June 1 compared to last year. Moreover, the area under cotton production fell over 10% for 2012-13 as the farmers turn towards the other crops due to the low price realization.