Our Correspondent Rajkot, Feb 22
Cotton prices moved up on increased buying by mills and exporters. The trend was aided by declining arrivals. During the last few weeks, arrivals have been dropping since growers are holding back their produce hoping for a higher price.
Gujarat Sankar-6 A grade cotton increased by Rs 200 to Rs 36,400-36,600 for a candy of 356 kg. B grade cotton traded at Rs 35,800-36,200. Kapas price moved up by Rs 10-15 to Rs 880-915 for a maund of 20 kg and kadi delivery kapas stood at Rs 900-930. About 35,000-40,000 bales arrived in Gujarat and 1.60 lakh bales arrived across the country.
A Rajkot-based cotton broker said: “Mills are buying cotton heavily as declining arrivals may create shortage at the end of the season.” According to market sources, due to higher demand and lower arrivals, cotton prices have increased by Rs 2,500 so far this month and it may go up to Rs 38,000 in the next one month. On lower arrivals, a Saurashtra-based ginner said: “Farmers are not willing to sell their cotton at this price.” So far in Gujarat, 52 lakh bales of cotton have arrived and 210 lakh bales arrived in the country.
(Source: The Hindu Businessline)