Cotton prices dropped Rs 200-300 for a candy (356 kg) on Monday on lower demand from exporters and millers. Raw cotton rates also declined as buying by ginners was limited.

At Rajkot and Gujarat, the Sankar-6 variety was traded on Rs 58,000-58,500 a candy. About 35,000 bales of cotton arrived in Gujarat and 1 lakh bales arrived in the country.

Raw cotton prices declined by Rs 10-15 for 20 kg to Rs 1,325-1,350, while gin delivery raw cotton price was Rs 1,360-1,365. Surendranagar Kapas for April Delivery contract on the National Commodity and Derivatives Exchange decreased by Rs 5.60 to Rs 1,193 a 20 kg on an open interest of 4,294 lots.

According to Mr Samir, a broker, exporters are keeping away from the market as their demand has almost been met, while millers are waiting for further fall in the market.

According to Cotton Corporation of India's latest report, cotton arrivals in the major mandis increased 4.7 per cent from a year ago to 222 lakh bales (170 kg each) till February 20 from October 1.

The report said that cotton arrivals in Gujarat gained by 2.9 per cent at 71 lakh bales, while in Maharashtra, arrivals were up nearly 37 per cent at 56 lakh bales and in Andhra Pradesh, arrivals gained 13 per cent at 36 lakh bales.

Meanwhile, in Andhra Pradesh raw cotton prices ruled at Rs 6,100 a quintal, while in places such as Krishna district, they were quoted above Rs 5,700 a quintal.

According to trade sources, cotton in Andhra Pradesh was ruling firm despite higher moisture in the crop.

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