Cotton prices witnessed an uptrend on Friday due to shortage of kapas or raw cotton. Moreover, the bullish trend in domestic cotton market also supported the prices. According to market sources, farmers are not selling their produce hoping better prices.
Gujarat Sankar-6 cotton was traded higher by Rs 200-300 to Rs 38,000-38,300 a candy of 356 kg. Kapas price gained Rs 10-15 to Rs 975-980 for 20 kg and kadi delivery kapas price was quoted at Rs 1,010-1,015.
About 35,000 bales (of 170 kg each) cotton arrived in Gujarat and 95,000-96,000 bales arrived in India.
Cotton ready delivery was at Rs 4,110-4,225 a maund (of 20 kg) in Punjab, Rs 4,110-4,130 in Haryana and Rs 4,115-4,125 in Rajasthan.
A cotton broker said, “Both spinners and exporters were active in the market to cover their demand. Fresh export inquiries were limited due to disparity at current prices.”
Traders said that cotton prices may rise further due to lower availability and strong consumption.
Since this year’s cotton production is expected to be lower, farmers are retaining their stocks and are in no mood to sell kapas.