Gujarat Sankar-6 cotton price was increased Rs 200-300 to Rs 34500-35000 per candy of 356 kg. Kalyan variety cotton was traded on Rs 25500-26000 per candy. Kapas price was gained Rs 20-22 to Rs 815-820 per 20 kg in local and Kadi delivery kapas was stood at Rs 845-860 per 20 kg.
About 15000-18000 bales cotton arrived in Gujarat and 85000 bales arrived in India.
The government had yesterday decided to allow further cotton exports for 2011-12 marketing year ending September, on the back of higher production estimates.
Rajkot based cotton broker said, “Export demand has increased in past two days and mills are also buying. For a short term cotton price will move upward and during this week it may reach to Rs 36000 per candy.
India has asked the state-run Cotton Corporation to maintain a buffer stock of 1 million bales between June and August, a government statement said Monday. It said the buffer stock is to be used for supplying local textile mills in case they faced a shortfall.
Meanwhile, the textile industry feels that the government’s decision to allow cotton exports will lead to a rise in its prices and a decline in domestic availability, the industry said today. The textile sector also fears that the rising cotton prices would put further pressure on margins of companies which have still not come out of their sluggish phase.