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Cotton fell Rs 1,000 a candy of 356 kg as demand slid in the past three days.
Sankar-6 variety declined by Rs 1,000 at Rs 33,500-34,000 a candy. Its lower grade fetched Rs 29,000-30,000 a candy.
Raw cotton or kapas sold at Rs 830-860 for a maund of 20 kg.
Brokers said demand was nominal as mills were not buying. Prices had risen to Rs 35,000 a candy earlier when the Centre removed restriction on exports on August 1. Top importers like China and other Asian countries, like Bangladesh and Vietnam, are main importers of the country's cotton. Exports were capped at 5.5 million bales of 170 kg each in October last year to cushion the domestic textiles industry against rising raw-material prices. A million bales more were allowed for export in June, after prices fell sharply.
According to estimates of the Cotton Advisory Board, surplus at the end of the current season would be 5.25 million bales on account of lower industry demand. In February, the board had estimated it at 2.75 million bales.
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