Commodities

Cotton blooms on trickling inflow, renewed offtake

Our Correspondent Rajkot | Updated on April 02, 2011

BL02_COM2_COTTON

Cotton prices continued to rule high on the heels of lower arrivals and fresh buying by ginners, particularly in Gujarat. Regular demand from mills added to the firm trend.

In Rajkot, Sankar-6 cotton was traded at Rs 61,000-62,000 for a candy of 356 kg, while raw cotton price was Rs 1,350-1,415 for a maund of 20 kg. As markets are closed for fiscal year ending until next week, arrival of cotton is almost nil.

Cotton from Maharashtra was traded at Rs 1,250-1,350 a maund and about 200-250 trucks arrived in Gujarat. A truck can carry 10 tonnes.

According to Mayurbhai, a Rajkot-based trade, Gujarat has low stock of raw cotton and that's why price are ruling firm.

Moreover, mills regularly buy according to their requirements and therefore, prices are unlikely to drop in the near term.

During last 15 days, cotton price has almost increased Rs 3,000 a candy to Rs 58,500-59,000 to Rs 61,000-62,000.

The Centre's move to allow unrestricted exports of cotton yarn, through a notification on Thursday, is also expected to keep cotton prices firm.

Published on April 01, 2011

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