Various predictions are available with us that there will be increase in the cotton global demand and cotton export from India therefore an imminent yarn price high is likely during peak demand period so it's would be better to manage yarn like foreign currency to control the price fluctuations.
The following options could be a better bet to manage fluctuations,
1. Like currency forward contract, get a price list for a period of over six months fixed form the spinners.
2. Stock the yarns based on the seasonal demand forecast.
why do we need to do this, It's better to calculate the prices for the buyers with a fixed price and close the costing rather than uncertain profit or loss due fluctuations.
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