Cotton Prices May Go Down

Font Size

Print

Feedback

Email

Discuss

Related Articles

Import of fodder seeds likely: PawarPolicy vacuum, supplies behind vegetable inflationIndia deposits rice, wheat seeds in Svalbard Vault

Mumbai, Sept 12: Domestic prices of raw cotton have declined in a range of 8-10 per cent during the last few days. Industry experts expect that cotton prices will further go down between 10-15 per cent in a week.

On Friday, the domestic cotton variety J-34 (Punjab) prices were quoted at Rs 2,100 per maund (md), down from Rs 2,300 per md, and the same variety’s prices in Hariyana too slid to Rs 2,000 per md from Rs 2,250 per md.

An industry expert says that this is because cotton arrivals have started earlier than expected in the northern mandies. On a daily basis, fresh arrivals of around 800-1,000 cotton bales (170 kg each) have started in Panjab and Hariyana mandies, which is higher than what is expected by the industry.

It is estimated that during the current year India’s cotton production will reach at around 185 lakhs cotton bales, up from last year’s around 175.75 lakh bales (170 kg each).

Admitting the fact, a local yarn merchant said: “In the last one week the prices of most of the cotton yarns have dipped in a range of 10 per cent.”

On the international front, the trend is reverse. Higher productions are forecast during the current year at around 20.2 million bales (each of 480 pounds), up from last year’s 18.3 million bales.

On Friday, international cotton future prices have rose to $52.55 cents per lb, up from $44.88 cents per lb as on August 11, 2004.

“The recent cyclone in the US has forced global cotton prices to go up, or else cotton prices should come down in the days to come,” said RK Dalmia, president of Century Textiles and Industries.

According to Mr Dalmia, “In the domestic market, cotton prices have started falling on fresh arrivals in the mandies. The industry hopes that during the current year there will be a bumper cotton crop and, accordingly, cotton prices remain under pressure.”