Cotton price have started to dip over the past few days on reducing buying by mills. Cotton prices have decreased by Rs 2,000 a candy in the last couple of sessions.

At Rajkot and Gujarat, Sankar-6 was traded at Rs 58,200-59,500 a candy of 356 kg. Raw cotton was traded at Rs 1,410-1,415 for 20 kg. Prices reduced by Rs 15-20 in two days. Around 47,000 bales arrived in Gujarat, and a total of 1.10 lakh bales arrived in India (1 bale is 170 kg).

According to Saurashtra-based traders, demand from millers and exporters reduced significantly. “Similarly, buying by ginners also fell as raw cotton was trading at sky-high prices,” they said.

According to Mr Samir, a broker, prices are expected to reduce more during the week. A fall of more than Rs 2,000 is expected.” India is likely to produce a record 329 lakh bales of cotton in 2010-11, against last year's 295 lakh bales, according to a senior Government official.

However, some traders estimate it to be lower at 320-325 lakh bales for the current season. Domestic cotton arrivals at the spot markets till January 30 in the 2010-11 season, went up 6 per cent on year to 19.5 million bales, the state-run Cotton Corporation of India said.

Rates elsewhere were : LRA Rs 57,500 (Rs 58,000); H-4 Mech1 Rs 58,500 (Rs 59,000);;Bunny Brahmma Rs 61,000 (Rs 61,000); MCU-5/Surabhi Rs 63,000 (Rs 63,000); DCH – 32 Rs 83,000 (Rs 85,000).

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