Buyer and seller should clearly reach correct understanding on the following factors.
1. Country of Origin, Area of Growth, Variety, Crop year
2. Quality – Based on sample or
Description of grade as per ASTM standard or sample
For grade only and specifying range of staple length,
Range of Micronaire, range of Pressley value, uniformity,
Percentage of short fiber, percentage of non-lint content,
Tolerable level of stickiness
3. Percentage of Sampling at destination
4. Procedure for settling disputes on quality or fulfillment of contract obligations.
5. Responsibility regarding contamination or stickiness.
6. Price in terms of currency, Weight and place of delivery.
7. Shipment periods
8. Certified shipment weights or landing Weights
9. Tolerances for Weights and Specifications
10. Port of Shipment and port of destination, partial shipments allowed or not, transshipment allowed or not, shipments in containers or Break-bulk carriers
11. Specifications regarding age of vessels used for shipment, freight payment in advance or on delivery
12. Responsibility regarding Import & Export duties
13. Terms of Insurance cover
14. Accurate details of Seller, Buyer and Broker
15. Terms of Letter of. Credit regarding bank .negotiation, reimbursement and special conditions, if any
Choose Correct Supplier or Agent:
Apart from ensuring correct terms of Contract, Buyer should ensure that purchase is made from Reliable Supplier or through a Reliable Agent. Some suppliers evade supplies under some pretext if the market goes up. Otherwise, they supply inferior quality Either way buyer suffers.
By establishing long term relationship will reliable Suppliers, Buyers can have satisfaction of getting correct quality, timely deliveries and fair prices.
It is good to establish long term relationship with a few Agents who represent reputed Trading Companies in various Cotton Exporting Countries. They usually give reliable market information on quality, prices and market trends so that buyer can take intelligent decision. As cotton is not a manufactured Commodity, it is good to buy from dependable suppliers, who will ensure supply of correct quality with a variation within acceptable limits at correct price and also deliver on due date.
In a market with varying market demand situation. Buyers should decide which counts of Yarn to spin. Buyer can call for samples suitable for spinning Yarn counts programmed for production. Many spinners plan to do under-spinning. For Example, cotton suitable for 44s is used for spinning 40s. Some spinners do over-spinning. They buy cotton suitable for 40s and spin 44s count. But, is advisable to spin optimum count to ensure quality and also keep cost of raw material at minimum level as for as possible. Some spinners also buy 2 or more varieties and blend them for optimum spinning. For’ this purpose, a good knowledge to evaluate cotton quality and co-relate with yarn properties of required specifications. Cotton buyer should develop expertise in assessing cotton quality. Machine tests must be done only to confirm manual evaluation.
TAKING RIGHT OPTION:
It is not advisable just to look at price quoted by supplier. Correct costing should be done to work out actual cost when the cotton arrives at Mills. Further lowest price does not always mean highest profit for buying. Profitability may be affected by anyone or more of the following factors.
- If the trash is higher, more waste will be produced reducing the Yarn out- turn and hence profit.
- If the uniformity is less, end – breakages will be more reducing productivity and profitability.
- If grade is poor or more immature fibers are found in cotton, the yarn appearance will be affected and Yarn will fetch lesser price in the market.
- If the transit period for transport of cotton is longer, then also profitability will be reduced due blocking of funds for a longer period and increased cost of Interest.
- Rate of Sales Tax varies from State to State. This must be taken in to account.
- Hence, thorough costing should be worked out before deciding on the quoted pnce onlv
The margin of profit in spinning cotton should be calculated before deciding on The various options available depending on market conditions should be studied.
The factors to be considered for taking options are as follows.
- Count for which demand is good in market
- Prices for various counts for which demand exists.
- Cost of manufacturing various counts.
- Adequacy of machinery for the selected count.
- Various varieties of cotton available for spinning the selected count.
- Profit margin for each count using different varieties.
- Price quoted by different Agents for same variety of selected cotton.
- Reliability of supplier for quality and timely delivery.
Apart from the price quoted by the seller, other incidental costs must be taken into consideration before buying.
a) Duration for goods to reach Buyer’s godown from the seller’s Warehouse. If the duration is longer, buyer will incur higher interest charges.
b) Cost of Transportation and taxes.
Resolution of differences
If any discrepancy arises in the quality, weight and delivery periods, sellers should be willing to resolve the differences amicably and quickly. In case the matter is referred to Arbitrator, the award of the Arbitrator must be immediately enforced.
Bench Marks for Easy Reference
It is better if quality bench marks are established for different varieties so that buying decisions are easy for buyers Following standards have been found to be appropriate for Strict Middling Grade Cotton of staple 1.3/32″.
- Staple Length ( 2.5% Spun Length) – Minimum 1.08″ or 27.4 mm
- Micronaire : Minimum 3.8, Maximum-4.6 Variation within bulk sample should not be more than _ 0.1
- Colour : Rd not less than 75 not more than 10
- Nep Content: Less than 150 per gram
- Strength : More than 30 grams/tex
- Length Uniformity Ratio: Not less than 85%
- Elongation : More than 8%
- Short Fiber Content: Less than 5%
- Seed Count Fragments : Less than 15 per grams
- Commercial Bench marks can be given as follows:
- Price Competitiveness
- Price Stability
- Easy Availability throughout year
- Uniform Classing and Grading system
- Even- running Cotton in all Characteristics
- Reliable deliveries òr Respect for sanctity of contract.
The need for quality evaluation is for following purposes
a) To get optimum quality at lowest price.
b) To decide whether cotton bought will can be processed to spin Yarn of desired specifications.
c) To check the quality of sample cotton with quality of delivered cotton.
d) To decide about correct machine settings and speeds for processing the cotton
e) To estimate profitability of purchase decisions.
Knowing the cotton properties is only half the battle for profits. It needs expertise to know how to get best of its value.
Currently popular instrument called HVI gives ready information on various parameters to make correct purchase decisions.
If may not be possible to get all the desired qualities in one variety or one lot of Cotton. In such case, an intelligent decision to select best combination of different varieties or lots to get desired Yam quality is necessary to get optimum yarn quality at optimum cost.
If correct evaluation is made, profits are large. Hence, evaluation of quality is essential for optimum profit making and also make the customers happy with supply of correct quality of Yarn.
Expert classers can manage to achieve reasonable level of correct evaluation. Now, with availability of better instruments, it is better to check qualities to make sure that desired quality of cotton is procured. These details should give cotton buyer reasonable guidance to make correct evaluation of cotton quality and ensure its suitability for producing required quality of yarn.
|QUALITY EVALUATION||CHARACTERISTICS CO-RELATION TO YARN|
|1. Staple Length||Spinning Potential|
|2. Fiber Strength||Yarn strength, less Breakages|
|3. Fineness||Finer Spinning Potential|
|4. Maturity||Yarn Strength and even ness, better dyeing|
|5. Non-Lint.content (Trash)||Reduced Waste|
|6, Uniformity Ratio||Better productivity and Evenness|
|7. Elongation||Less end Breakages|
|9. Class||Yarn Appearance|
|10.Stickiness||Spinning problem by lapping & Dyeing quality|
|11. Grey Value||Yarn lustre|
|12. Yellowness||Yarn Appearance|
|14. Moisture Content||8.5% moisture content optimum for spinning at 65%|
QUALITY TESTING INSTRUMENTS:
|3.Pressley Apparatres||Fiber Bundle Strength|
|4.HV I Instrument||Length, Strength, Uniformity, Elongation, Micronaire, Color and Trash|
|5.Stelometer Instrument||Strength, Elongation|
|6.Micronaire||Combined test of fineness & maturity|
|7.Shirley Trash Analyser||Trash Content|
|8.Manual Test||Class & staple length|
|10.Colorimeter||Grey value & yellow ness. Brightness|
|11.Polarised light Microscope or