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Cotton prices dip in India on higher arrivals
Dec '11
Owing to higher arrival, the prices of cotton dipped in Indian markets on December 2. The price of Sankar-6 variety fell by Rs. 200 a candy (1 candy = 356 kg) and was traded in the range of Rs. 35,300-35,400 a candy.

The spot market price of cotton was Rs. 3,470-3,500 a quintal in Rajasthan, Rs. 3,475-3,505 a quintal in Punjab and Rs. 3,460-3,490 a quintal in Haryana.

In Gujarat, the price of raw cotton (kapas) declined by Rs. 10-15 a maund of 20 kg. In Rajkot, raw cotton was traded at Rs. 830-860 a maund, while it was quoted at Rs. 870-875 a maund for delivery to ginners.

So far, there has been an inflow of around 150,000 bales (1 bale = 170 kg) of cotton in India this season, with Gujarat alone witnessing an arrival of 45,000 bales.

Traders expect the price of cotton to fall further, as the demand is likely to remain below normal this season. They foresee a sharp decline in prices in January, along with an increase in the inflow of new cotton in the market.

Fibre2fashion News Desk - India

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