Cotton prices declined by Rs 200-300 a candy of 356 kg on lower demand frommills and exporters. Kapas price declined by Rs 10 for a maund of 20 kg.
Gujarat Sankar-6 price declined toRs 33,300-33,400 a candy, while kapas was down by Rs 10 to Rs 800-870 a maund in Rajkot. About 40,000-42,000 bales (of 170 kg each) arrived in Gujarat and 150,000 bales arrived in India.
Cotton touched Rs 34,000 last week but after that demand has come down and arrivals too started increasing. In Gujarat, arrivals of cotton were up by almost 5,000 bales a day.
A cotton broker said: “After prices gained last week, mills and exporters demand declined and it may continue this week also. But price may not go below Rs 33,000 a candy in near future.”
The Government has procured 20.74 lakh quintals of cotton at the minimum support price (MSP) so far in the 2012-13 marketing year that began from October. Currently, the MSP of medium staple cotton has been fixed at Rs 3,600 , while long staple cotton is Rs 3,900.