RAJKOT, SEPT. 2:
Cotton prices touched Rs 50,000 for a candy of 356 kg on Monday on supply shortage.
According to market sources, prices moved up by Rs 2,500 a candy over the last one week due to higher demand from mills.
Gujarat Sankar-6 cotton traded at Rs 49,500-50,000. Medium grade cotton traded at Rs 48,000-49,000 a candy.
Kapas or raw cotton price quoted at Rs 1,225-1,250 for a maund of 20 kg.
The price of kapas has gained about Rs 100 in the last one week. About 700-1,000 bales of cotton arrived in Gujarat and 2,200-2,500 bales across the country. A Rajkot-based cotton broker said that prices have improved as the demand from spinning mills is high. Moreover, higher prices in the global market is also another reason for the surge.
On the other hand, supply is very tight and the new season is a month away.
However, traders say that cotton price will not rise much from this level as demand may be curbed at the higher level.
According to the Cotton Association of India, production is estimated to be higher at around 372 lakh bales in the new season starting October against 355 lakh bales this season.
Source: The Hindu