Coimbatore, Jan 31 (PTI) With all fundamental factors changing it is time to be alert on purchase and inventories because the fall of the price of cotton would be sharp and quick, Indian Texpreneurs Federation (ITF) said on Monday

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Cotton touched a 10-year high and its prices are going up daily in the international and the domestic markets and an abundant liquidity combined with robust demand for goods has created a bullish momentum in 2021, ITF convenor Prabhu Dhamodharan said here.

Stating that a few factors would influence correction in prices, he said the demand for fashionable goods was falling due to inflationary trends across markets, and a shift in spending towards service.

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The US and UK retail sales declined in December and according to a consumer confidence survey in the US the sales fell by nearly six per cent since November 2011, he said in a press release.

"We are getting feedback from the international markets about resistance from customers towards accepting new prices and the same signals are reflecting in the new order confirmations from the developed markets, " Prabhu said. Cotton is not an essential commodity like edible oils or foodgrains. Its demand depends on the spending power of the people. With inflation on the rise, the spending power would be put to test, he said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)