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Ascending price trend in cotton to retire finally
17
Mar '08
Expert survey indicates a declining trend in the spot prices of raw cotton in the domestic market because of lower consumption, erratic export orders from China and steady influx of raw material.

During the present season of 2007-08, raw cotton spot prices at major trading center have soared persistently. Reasons behind this trend can be attributed to sustained buying from exporters, millers and ginners.

However, the trend is showing a gradual slow down as export demand from China has declined and so has the local consumption.

The study further denotes, on one hand, India is expecting to record an output of 310 lakh bales for the coming season and on the other, a few selected variety of cotton showed a rise of 12-14 percent in the beginning of this season.

So far, the domestic market has received about 265 lakh bales of cotton (of the total crop produced) which is already higher when compared to last year's level. Moreover, daily inflow of raw cotton in various merchandising centers of the country has reached nearly 1.60-1.75 lakh bales.

However, experts feel that domestic consumption is likely to come down from the assumed 230-240 to 180 lakh bales because of insufficient take-off of yarn and clothes.

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