Cotton price declined Rs 300 a candy (of 356 kg), as demand from mills dropped. Raw cotton price also came down, as most of the ginning units in Gujarat were closed.
In Gujarat, Sankar -6 cotton traded at Rs 58,000-59,000 a candy — in Manavadar cotton sold at Rs 57,900-58,300 a candy. Raw cotton ruled at Rs 1,300-1,335 for 20 kg. About 28,000 bales (of 170 kg) of cotton arrived in Gujarat.
In Maharashtra, cotton traded at Rs 56,000-58,000 a candy, and 30,000 bales arrived. Raw cotton quoted Rs 1,200-1,250 for 20 kg.
According to brokers, mills are buying according to requirement. Cotton prices have dropped in absence of any big demand.
Four-fifths of ginning units in Gujarat have shut down since last month, as rising prices of raw cotton have pushed up production costs. Even the ones still operating are working part-time.
The Saurashtra Ginners Association President, Mr Bharat Vala, said, “Farmers are not willing to sell raw cotton at a lower price. On the other hand, mills' demand has reduced because of high cotton prices.”
According to Mr Vala, there are about 15-17 lakh bales of unsold raw cotton is available with farmers in Gujarat.