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Short supply of raw cotton lifted prices by Rs 1,000-1,500 a candy for ginned (lint) cotton. Moreover, strong international markets and some fresh buying supported cotton .
At Rajkot, Gujarat cotton Sankar-6 traded at Rs 57,000-58,500 for a candy of 356 kg, with a gain of Rs 1,500.
Raw cotton increased by Rs 50-60 for 20 kg to Rs 1,300-1,385 in Saurashtra.
At the Kadi market, it was quoted at Rs 1,350-1,370 for 20 kg.
A Rajkot-based broker said: “Buying is limited from every side but short supply of raw cotton and higher price of raw material have kept away ginners. That's why the cotton price increased today, but it will not sustain for long as demand is not enough.”
He said: “Ginners are waiting for a fall in raw cotton price. Once prices become stable, ginners will start buying again.”
In its latest estimates, the Cotton Advisory Board (CAB) has reduced its cotton output estimates by five per cent from that made on January 6. In its estimates made on January 6, the CAB had anticipated cotton output at 32.9 million bales (170 kg make a bale), which has now been scaled down to 31.2 million bales.
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