Prices of cotton took to a sharp incline and recorded a 5% hike following a decline in the output estimates for the current crop year. What also boosted this increase was the non-abundance of good quality of cotton being produced.
Even though analysts have forecasted this to just be a temporary upsurge, the current price rise will hit profit margins of fabric and garment manufacturers hard. The forecast made in February by the Cotton Advisory Board headed by Kavita Gupta, estimated cotton output as 35 million bales in 2015-16 as compared to 38 million bales last year.
This price increase will also definitely move in tandem with the global market.