Commodities

Supply squeeze pushes up cotton

Our Correspondent Rajkot | Updated on March 14, 2011

BG Cotton. File Photo: P. V. Sivakumar   -  Business Line



Raw cotton price increased by Rs 15-20 for 20 kg on tight supplies. Cotton also ruled strong in Gujarat.

In Rajkot, Sankar-6 variety of cotton traded at Rs 58,500-59,000 a candy (of 356 kg). Raw cotton price increased by Rs 15-20 to Rs 1,325-1,350 for 20 kg. Around 22,000 quintals of raw cotton arrived in Saurashtra. About 28,000 bales arrived in Gujarat and 70,000 in the rest of the country.

Mr Avdhesh Sejpal, a cotton broker, said, ?About 20 per cent of raw cotton stock is left, and farmers are holding on to this strongly, as they expect prices to rise. Arrivals are poor. This may lift cotton prices. During the week, cotton may gain Rs 1,000 a candy.?

At present, mills are buying according to requirement from Gujarat as prices are too high.

Cotton ginners, losing Rs 3,000 a day, are shutting down their units because of higher prices of raw cotton and short supply. Prices increased from Rs 41,500-42,000 a candy at the beginning of season to Rs 60,000-60,500 a candy in February.

Published on March 14, 2011

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