Cotton prices dropped Rs 4,000-5,000 for a candy of 356 kg this week with buyers, particularly mills, keeping off the market. They are keeping away after the Cabinet Committee on Economic Affairs did not take any decision on allowing export of cotton on Thursday.

Gujarat Sankar-6 was traded Rs 40,000-50,000 a candy, based on quality. Price of Kalyan cotton dropped to Rs 31,000-32,000 from Rs 40,000-41,000. Raw cotton was traded at Rs 1,100-1,140 for a maund of 20 kg. About 15,000 bales arrived in Gujarat and 50,000 all over the country.

A Rajkot-based cotton broker said: “There are no demand of any kind for cotton. Price will fall further in the coming days. Market will see some change in fortunes only when mills buy to buy.”

At the beginning of the week, lint cotton ruled at around Rs 55,000. Raw cotton has plunged about Rs 150 a maund this week.

According to market sources, mills are having stocks for a month. Emergence of fresh demand is unlikely now.

The acreage under cotton crop next season sowing for which will begin next month is expected to increase 7-10 per cent following high prices and expectations of higher minimum support price from the government.

comment COMMENT NOW