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Raw cotton price fell Rs 10-15 for 20 kg in Gujarat as demand dropped before the financial year ends. However, cotton prices have remained stable as mills are buying to meet their requirements.
Raw cotton was quoted at Rs 1,400-1,420 for 20 kg. About 15,000 bales of cotton (170 kg each) arrived in the State. Gujarat Sankar -6 cotton ruled flat at Rs 61,000-61,500 for a candy of 356 kg.
Mr Arvindbhai Raichura of Balkrishna Ginning from Rajkot said: “Raw cotton price is too high for ginning mills. Moreover, because of March-ending everybody is busy settling accounts. But overall cotton price will not come down as stocks have depleted. In April, cotton prices will increase.”
According to traders, so far around 294 lakh bales of cotton have arrived in the market.
“The market expects the cotton output to reach a new high of 6.8 million tonnes (4 crore bales) in the next season as the rally in prices is expected to spur the farmers to boost planting,” the National Commodity and Derivatives Exchange, the country's second largest commodity exchange, said in its cotton overview for March 2011.
The area under cotton rose by 8.25 per cent to 11 million hectares in 2010-11. Experts believe that area would again rise this year as farmers received good remunerative prices last year.
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