Our Correspondent Rajkot, Feb 25
As demand dropped after a recent hike, cotton declined by about Rs 200 a candy on Monday. However, kapas price remained strong due to low arrivals.
According to traders, cotton price may decline but not much as supply is weak. Gujarat Sankar-6 cotton was traded lower by Rs 200 to Rs 36,700-36,800 a candy of 356 kg. B-grade cotton stood at Rs 36,400-36,500. Kapas price remained stable at Rs 880-980 for 20 kg in Saurashtra. About 30,000-32,000 bales of cotton arrived in Gujarat and 1.35 lakh bales cotton arrived in India. Traders said that correction is in process after sharp gains last week and prices may further decline by Rs 500-700 a candy in the coming days.
According to data from the Textile Commissioner Office, cotton consumption by non-SSI mill stood at 2.043 million bales during December, 2012, up 12.06 per cent from the same period last year and 6.8 per cent higher than the previous month. April-December consumption stood at 17.65 million bales up 11.74 per cent from the same period last year. SSI mill consumption was at 1,90,000 bales unchanged compared to the same period last year. Total mill consumption was seen at 2.23 million bales compared with 2.01 million bales during the corresponding period a year earlier. (Source: The Hindu Businessline)