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Cotton prices maintain upward trend
Apr '10
Raw cotton prices depicted a strong trend in the second fortnight of March 2010. Overall cotton arrivals have touched 260 million bales as of March, which is 2.5 percent up from the same period in the last season.

In the main cotton producing states of North India, like Rajasthan, Punjab and Haryana, J-34 variety of cotton was quoting firmly at Rs 2950-3010 per maund (one maund equals 37.32 kilograms). The crop estimates in these Northern India states is expected to touch four million bales.

In the other major cotton producing state of Gujarat, price of the Shankar-6 variety was quoting between Rs 28,500-28,900 per candy (one candy equals 356 kgs) and V-797 was ruling at Rs 20,300-21,000 per candy in the spot market.

Gujarat is expected to grow an estimated 9.5-10.0 million bales of cotton in the 2009-10 season. The main reason for the flare up in cotton prices in Gujarat is due to growing domestic as well as overseas demand for the local cotton.

DCH cotton quality in Karnataka was quoted at Rs 40,000-43,000 per candy in the spot market and the cotton crop was estimated at around 1.1 million bales, while in Andhra Pradesh, where crop is estimated at between 5-6 million bales, MCU-5 variety prices were ruling at Rs 28,500-29,500 per candy.

In the other major cotton belt of Maharashtra, Mech-1/H4 was ruling between Rs 27,500-28,500 per candy in spot, while in the neighbouring state of Madhya Pradesh prices were ruling at the same levels as in Maharashtra.

Fibre2fashion News Desk - India

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