Prices of the Shankar 6 variety of cotton may fall to Rs 35,000 per candy (1 candy=356 kilogram), after the December 15 deadline for cotton exports, MB Lal of Shell Exports said on Thursday. Prices of Shankar 6 variety of cotton as of Thursday were at Rs 44,000 per candy, up from Rs 29,500 on Jun 1 this year, a rise of 49.2%. Shankar 6 variety of cotton generally witnesses good domestic and export demand.
?I won?t be surprised if prices fall to Rs 35,000 per candy provided no extension is given,? said Lal. Prices are expected to decline post the December 15 deadline for cotton exports. The government had set an export ceiling of 5.5 million bales to keep domestic prices under control. The timeline for exports was November 1-December 15 and industry experts believe neither the period nor export limit should be extended. ?No extension should be given. In fact, penalties should be levied on those who have not utilised the quota in the time given,? Lal said.
