Soaring Cotton Prices & Manufacturing Protests - the cotton equation
http://www.fibre2fashion.com/industry-article/paidArticles/3190.asp Article Abstract: Garment makers are paying top dollar for purchasing raw cotton. Garment exports have suffered serious drawbacks due to costs and the division that lies between the buying prices, and the instability of raw material costs. Fabric costs account for 60-70% of the Textile price. There is an unusual rise in the price of cotton since August 2010. Increase in the price of cotton is fueled by natural disasters such as floods and rain in the major cotton producing areas such as Pakistan, China, and slashed crops in Australia. Speculating buying and strong demand from China took cotton prices to new heights in the Asian markets. Prevailing uncertainties in the global textile production weakens physical demand fairly.
Rising prices of cotton has made it the leading commodity of the bull-market. Price rise will pressurize the input costs impacting the margins. This is expected to be passed on to the ultimate consumers. "Subscribe to your Premium Articles"
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