Cotton likely to fetch fairly high price, next season (Tanzania)

Besides cotton buying firms even the Tanzania Cotton Board (TCB), too don't seem to be keen on giving a definite account of the cotton's farm gate price for the coming season. However, it is an irrefutable fact that, Tanzanian cotton would fetch comparatively high price, next season.

TCB Acting Director General Marco Mtunga contended that, the commodity prices certainly are not going to persist at their present levels, but in any case if they go down, it won't be a major drop.

As revealed by the Washington-based International Cotton Advisory Committee (ICAC), this season, the average cotton price touched its peak at 78 US cents per pound, which is the highest rise in prices since the 1996-97 season. Also, the current season price exceeded the decade��s average of 58 cents a pound by 20 cents. ICAC jotted down these facts in its cotton world situation review for July to August period.

According to the Committee, strong market fundamentals together with the persistent decline in cotton production at a rate of six percent to 21.9 million tonnes, were the main factors responsible for this sharp rise in commodity prices during 2009-10 season.

The cotton industry in Tanzania too has not remained untouched from the scarcity of the commodity, while reports even state that, a number of cotton ginners and exporters are apprehensive that they may have to face legal actions at Liverpool Cotton Association (LCA) arbitration, as they had failed to keep the terms of their contract and deliver goods to their overseas buyers, in time.