Cotton prices facing fluctuation in India

The Cotton Corporation of India (CCI) reported the current season arrival to 151.41 lakh bale as of now as compared to 182.23 lakh bale in the same time last season.

In the north zone of Punjab, Haryana and Rajasthan, the daily average arrivals are around 15,000 bales. Cotton lint prices remained steady with no major variations.

Gujarat cotton market on account of slow-moving demand from exporters witnessed decline in prices. Moreover, last week the arrivals also dropped from 65000 bales to 55000 bales. The arrivals were less due to severe cold wave conditions, coupled with farmers’ reluctance to sell kappas, anticipating better rates. Prices were ruling firm. S6 prices stood at around Rs 42,800 to Rs 43,000 for 29 mm staple length.

According to traders, cotton price may not decrease further as farmers are holding back their produce to see a hike in prices.

While, in Maharashtra there is steady arrival of 50,000-55,000 bales daily. Cotton crop estimates for the current season (2013-14) have been pegged at 375 lakh bales (170 kg a bale) compared to 365 lakh bales last season, an increase of 2.73%, reported the Indian Cotton Federation (ICF) on Monday. The daily average seed cotton arrivals were around 2 lakh bales. So far 30-35 lakh bales have arrived in the market.

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