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Cotton prices continue to ascend
Sep '11
In Gujarat, one of the top cotton growing States in the country, the price of cotton has risen by Rs. 500-1,000 per candy (1 candy = 356 kg) in the last few days, owing to lower arrival of new crop and increase in demand.

About 2,000-3,000 bales of cotton have arrived in Gujarat, compared to 4,000-5,000 bales in India. Under the present market conditions, price of cotton is not expected to decline in the next few days.

The price of lower grade cotton was Rs 33,000-33,500 per candy on September 2, while that of Gujarat Sankar-6 cotton was Rs 38,000-38,500 a candy.

The price of 'kapas', as cotton-seed is called in this part of India, has also risen by Rs 25 in the last few days and it was trading at Rs 900-925 per 20 kg on Friday.

Arrival of new cotton crop has begun in some parts of the State, with about six tons of raw cotton reported to have arrived in Amreli town. The new crop was traded in the range of Rs 250-700 per 20 kg, owing to its low-grade quality.

As cotton is currently under Open General License (OGL) for exports, the demand is increasing both for exports as well as from mills. This is causing an increase in the prices, but experts say the price may not go beyond Rs 40,000 a candy. They put the figure on the lower side at Rs 33,000.

Due to late arrival of monsoon in many cotton growing areas and record high sowing of the crop this season, India's total cotton production is likely to grow by nine percent.

Fibre2fashion News Desk - India

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