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Cotton prices continued to rise on Monday as supplies tightened and farmers held on to their stocks.
In Rajkot, Gujarat Sankar -6 variety cotton was traded at Rs 59,500-60,000, increased by Rs 500 from the previous close of Rs 59,000-59,500 a candy of 356 kg.
Raw cotton price also increased by Rs 15-20 to Rs 1,350-1,375 for 20 kg.
According to market sources, arrivals are poor now because of festivals and strong holdings of farmers.
Mr Avadheshbhai Sejapal, a Rajkot-based broker said, “Farmers don't want to sell below Rs 1,400/20 kg. Stocks are low as the season ends. In the coming days, the market may stabilise as there is no huge demand. Only mills are buying according to requirement.”
“Cotton prices may increase in April as ginners have no stock. They will start buying after April 10. At present, ginners are busy settling accounts as March ends,” said Mr Bharat Vala, President, Saurashtra Ginners Association.
Prices of cotton in the international market would continue to stay high for some months more, a top official of Liverpool-based International Cotton Association said. According to it, rising prices of cotton in the international market is not an aberration, as demand for quality cotton is huge.
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