Cotton prices remained firm on demand from mills. According to industry sources, cotton is unlikely to fall the near future as farmers hold on to the poor quality stocks.

Gujarat Sankar -6 cotton variety increased Rs 1,000 to Rs 61,000-61,500 a candy of 356 kg. Raw cotton price also jumped Rs 15-20 to Rs 1,420-1,425 for 20 kg in Gujarat. About 17,000-18,000 bales arrived in Gujarat and 60000 bales in the rest of the country.

Mr Avdhesh Sejpal, a Rajkot-based broker, said, “There is no chance for market to go down as stocks are of poor quality. Farmers are holding on to the stocks in hope of better returns.”

Domestic mills have to cover huge quantities of cotton to meet requirements until the new crop arrives in October, said experts.

In Gujarat, agricultural produce marketing committees will be closed for a week to settle accounts for year-end.

According to sources, an estimated 25.8 million bales, 83 per cent of the forecasted output of 31.2 million bales, had arrived into the market till Wednesday, as compared to 25.1 million bales, 76 per cent of the last season's output of 33.9 million bales that hit the mandis around the same time last year. This means an estimated 5.3 million bales, 17 per cent of the year's output, is left with farmers and stockists.

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