India: Cotton wilts on slack offtake



Cotton prices fell on Monday as demand was slow from exporters and spinning mills.

According to market sources, currently local mills are active in the market.

Gujarat Sankar-6 cotton declined by Rs 200-300 to Rs 38,400-38,500 for a candy of 356 kg.

Kalyan cotton was quoted at Rs 28,500-29,000.

Kapas or raw cotton decreased by Rs 10 to Rs 870-997 for a maund 20 kg in Saurashtra, while Kadi delivery kapas stood at Rs 910-1,005.

About 22,000-23,000 bales arrived in Gujarat and around 75,000 bales arrived in India.

Cotton ready delivery quoted at Rs 4,050-4,140 a quintal in Punjab, Rs 4,020-4,030 in Haryana and Rs 4,020-4,030 in Rajasthan.

A Rajkot-based cotton broker said that local spinners were active in the markets but they were reluctant to buy in large quantity. Exporters were out of the market due to lack of fresh export orders. Traders were also worried about the impending sale by the Cotton Corporation of India.

CCI is likely to release around 4,00,000-5,00,000 bales for local mills in the coming days.

In its recent report on cotton, the Cotton Association of India noted that cotton exports have virtually come to standstill, while average daily arrivals continue at a pace of over 1,00,000 bales (each of 170 kg).

This is expected to create huge surplus cotton available in the country for the year 2012-13.

Total arrivals as on March 31 stood at 29.4 million bales so far.

Source: Business Line