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G. Gurumurthy

The cotton market appears clueless now on lower arrivals and no demand for exports.

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Coimbatore Feb. 5 Cotton kapas (rat cotton) prices have begun to rise with almost all key varieties registering a jump of Rs 500 per candy (355.56 kg) in the last one week.

Kapas prices of varieties such as v.797, Shankar-7 and Mech-1 in Gujarat and Maharashtra have moved up.

Similarly, there has been an increase ranging between Rs 200 and Rs 300 a candy in the price of MCU-5 from Andhra Pradesh.

Most terminal markets, too, have reported slower arrivals of kapas giving impression that the farmers in key producing centers are holding back the supplies, cotton trade sources here said.

The higher price quote is attributed to lower arrivals in the market.

Market clueless

Punjab centers are said be witnessing a drop in arrivals to 12,000 bales (of 170 kg) from last week's 35,000 bales. Similar drop in the arrivals in Gujarat and Maharashtra markets too is being reported, where the supplies fell from 45,000 bales to 30,000 bales and 55,000 bales to 8,000 bales, respectively this week.

The cotton market, according to sources, appears clueless now with the terminal markets witnessing lower arrivals, even as there has been no demand for cotton in the export market. Of the 27 lakh bales contracted for exports, only 20 lakh bales were said to have been moved out.

Some of spinning mills facing a cash crunch/liquidity in yarn market are reportedly desisting from fresh purchases. On the contrary, spinners have this month slashed yarn prices by Rs 7-9 a kg across the counts to beat the liquidity crunch, the sources added.

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