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Cotton prices down 51% from historic peaks
Jul '11
Cotton prices are in a mode of continuous decline, ever since April 2011.

After having touched peaks of Rs 63,000 per candy (1 candy = 356 kg), Shankar-6 variety of cotton has plunged sharply to Rs 30,375 per candy on July 25, down a stupendous 51.78 percent in a matter of less than four months.

It may be recalled that when the cotton season 2010-11 began in October 2010, cotton prices were ruling at around Rs 31,000 per candy and more than doubled in a period of six months, to plunge to the same levels once again.

Experts attribute the decline in cotton prices to the slowdown in demand from spinners. Spinners are waiting for prices to stabilize before committing fresh purchases.

Even the recent permission granted by the government to export an additional one million bales (1 bale = 170 Kg) of cotton has not helped generate positive sentiments in the cotton market.

Fibre2fashion News Desk - India

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