KB Agarwala, MD of Rupa & Company, spoke to CNBC-TV18 to talk about the India cotton price picture and demand scenario.
KB Agarwala, MD of Rupa & Company, said “The fourth quarter will be very good because demand is very good. The only hurdle is the rise in yarn prices. In the market, the demand is very good and I hope that Q4 will be very good in comparison to the last year.”
On yarn prices, he said, “There is more than 50 percent rise in yarn prices over last seven months. We have passed partly to the consumers.”
He further added, “Our prices should go up around 20 percent and we could manage only a 10 percent rise in the price because there is huge resistance from the consumers.”
On factors driving the rise in yarn prices, he said, “There is a huge demand for the export for the yarn as well as cotton. Last year the cotton export was nearly 50 lakh bales and this year it is estimated around 70 lakh bales.”
