Wal-Mart Supplier Moves to Short-Term Deals on Cotton Volatility
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Alok Industries Ltd., an Indian supplier of textiles to Wal-Mart Stores Inc. and Target Corp., cut the length of its sales contracts to about three months from one year after volatility surged in the cotton market.
“Customers want to pay according to the prevailing cotton prices,” Alok Agarwal, the chief executive officer of Alok’s international unit, said in a telephone interview from New York. “It is very difficult to evaluate the cost of cotton on a long-term basis.”