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Cotton prices continue to decline in the absence of demand, particularly from spinning mills.
On the other hand, farmers have resorted to panic sales since their hopes of the Centre allowing further export of cotton have been dashed. Ginning mills have begun to close since they are not finding any takers for lint cotton.
In Gujarat, Sankar-6 cotton is being traded at Rs 48,000-49,000 for a candy of 356 kg. The price has dropped Rs 2,000 within a week's time. The Kalyan variety was traded at Rs 30,000-32,000 a candy.
In Gujarat about 15,000-16,000 bales (170 kg each) of cotton are arriving daily and in the country, arrivals are around 45,000-50,000 bales.
The price of raw cotton was Rs 800-1171 for a maund of 20 kg in Rajkot.
According to brokers, the market had waited in vain for the Government to allow further exports. South-based mills have built up ample stocks and as a result, they are not buying.
Meanwhile, over 300 farmers observed a fast on Sunday in Vidarbha, Maharashtra, demanding that the Government allow cotton exports. Cotton prices have also dropped despite the Centre allowing unrestricted exports of cotton yarn. The decision was expected to help spinning mills to overcome their problems of inventories. However, with the garment sector going through a rough patch, the spinning sector is not seeing much of a pick up in demand.
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