Indian cotton arrivals down to 40,000 bales/day: ICF

16 May '15

5 min read

Good quality kappas is being procured from farmers at Rs 4500 per quintal by ginners, while cotton seeds are sold by ginners at Rs 2000 per quintal.

Price for good quality Bunny of 30mm is around Rs 36,000 spot in North Karnataka while 29mm Bunny of Raichur was sold at Rs 35,000 spot per candy and good quality Dch-32 was sold at Rs 48,000 spot.

ICF noted that daily kappas arrivals are very poor in Tamil Nadu and that good quality DCH-32 of 35 mm is priced at Rs 48,000 spot per candy.

While, RCH of 31 mm is sold at Rs 37,500 spot per candy and that buying from mills continued as cotton arrivals are also still continuing.

“Domestic mills crave for quality cotton at affordable prices and also raw material security and also sustained supply to run their units,” ICF observed.

Standing plants are in healthy condition, but unseasonal rains in delta belt of Thiruvarur and Thanjavur tracts have damaged cotton crops, which is secondary to main crop.

The surprising stability shown by the Cotlook-A Index at 73.55 cents per lbs and New York Futures maintaining at 65.5 cents per lbs consistently are signs of good activity in the cotton market.

“This is despite the huge unsold cotton stocks lying with the cotton trading community worldwide,” ICF added in the report.

ICAC has published a FAO study report which states that there is a need for investment in sustainable cotton for social, environmental and economic reasons.

ICF quoted market reports by saying that though China’s cotton imports are down, India has exported largest volume to China out of India’s overall cotton exports.

Also according to reports, Burkina Faso and Mali are expected to increase their cotton production targeted earlier. (AR)

Fibre2fashion News Desk - India

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