Our Correspondent Rajkot, March 1
Cotton prices touched Rs 38,000 a candy of 356 kg on Friday but soon after demand declined. Traders said demand began taking a hit once prices touched Rs 37,700. However, prices ended Rs 200 higher compared with Thursday’s price.
Demand for cotton still exists in the market but buyers are unwilling to pay higher prices that sellers are demanding. In the morning, Gujarat Sankar-6 cotton quoted higher by Rs 500 at Rs 37,900-38,000 but, thereafter, it declined to Rs 37,500-37,700. Kapas or raw cotton price touched Rs 1,000-1,020 for a maund of 20 kg due to lower arrivals and higher demand. About 35,000 bales cotton arrived in Gujarat and 1.25 lakh bales cotton arrived across the country.
A Rajkot-based cotton broker said that farmers did not want to sell kapas below Rs 1,000, while buyers offered only Rs 950-975. Spinners and exporters were active in the markets but they are reluctant to buy at higher rates. Fresh export inquiries were limited. Traders said that cotton may rise further; but a small correction is likely in the near future.
(Source: The Hindu Businessline)