The buying and pricing of raw cotton is now a sophisticated, complicated, and very challenging responsibility that must be handled professionally.
Today, the textile industry is a global industry and we are living in a world full of volatility in commodity prices, foreign exchange, and interest rates. Since raw cotton presents such a large percentage of total input cost, bad judgments in price fixations can seriously affect the profitability of a company.
More and more cotton growers and textile mills around the globe employ the services of consultants to assist them with their cotton pricing and risk management decisions. This is not surprising as cotton is the only major input cost item over which a textile mill has control.
We have the cotton industry