Just When You Thought These Retailers Were Safe
Just when it seemed as if the price of cotton was heading down and clothing retailers could get back to the important business of style rather than the tedious business of product costs, India goes and drops the hammer on the cotton market. On Monday, the Indian government announced that it will immediately and indefinitely ban all cotton exports, including shipments that had already been scheduled but not yet shipped.
Not this again
Around this time last year, clothing retailers were struggling to survive after the price of cotton had nearly tripled in just one year. Despite a long drought in Texas, where much of the United States’ cotton is grown, prices fell by more than 50% throughout the year. The United States is the world’s biggest cotton exporter, but the trouble here was outweighed by what is projected to be a record harvest in Australia and softening global demand. To read the full story click here.
Entry filed under: Agriculture, Business, Cotton, Economy, Farming, Flax, Investing, Recommended Reading, Sustainability, Textiles. Tags: Aeropostale, American Eagle, Cotton, HanesBrands, India, India ban, Lululemon Athletica, Naturally Advanced Technologies, Naturally Advanced Technologies Inc., spandex.