Cotton prices rebounded on Monday on lower arrivals and higher demand, especially from spinning mills in the South. Growers, too, have begun to hold on to their produce on hopes of getting higher prices in the coming days.

Prices for Shankar-6 variety were quoted at Rs 53,000 a candy (of 356 kg) in Gujarat and Rs 51,500-52,500 in Maharashtra. Raw cotton prices at Gondal Agricultural Produce Marketing Committee yard increased to Rs 1,200-1,235 a maund (of 20 kg).

“Arrivals are lower since growers are not bringing enough cotton to the market. Demand is high on the other hand,” said Mr Mahesh Patodia, a trader at Gondal market.

At Rajkot, raw cotton was quoted at Rs 5,585 a quintal against Rs 5,500 on Saturday. Quality produce fetched nearly Rs 6,175 a quintal.

In Andhra Pradesh, raw cotton ruled at Rs 5,300 with arrivals in Khamman being reported at 640 tonnes.

According to the Cotton Corporation of India, total arrivals till Sunday (from October 1) were 205.28 lakh bales (170 kg each) against 194.20 lakh bales during the same period a year ago.

Daily arrivals have dropped to 1.3 lakh bales, according to its weekly report.

Though cotton production has been projected to be higher at 329 lakh bales by the Cotton Advisory Board, trade source are of the view that the output will be lower. This is in light of the crop being affected by unseasonal rain in November in Gujarat, Maharashtra and Andhra Pradesh.

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