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Cotton prices still on a roll
14
Aug '10
Cotton prices are firming up with each passing day and according to cotton experts it is mainly due to cotton mills booking the new cotton in advance, which is expected to arrive in the market, October onwards.

Prices of the Shankar-6 variety of cotton which is grown in Gujarat and which is very much in demand in the Indian as well as overseas markets are currently quoting at Rs 30,500-31,000 per candy (1 candy=356 kg).

The other reason put forth by experts is the low level of cotton inventories in the market from the previous season. Demand from cotton exporters is too on the rise, since the government is going to relax rules on exports of the white gold, October onwards.

Earlier speaking to fibre2fashion, Mr NP Hirani, Chairman of Maharashtra State Cooperative Cotton Growers Marketing Federation Ltd, had said that, while the cotton output stood at 32.5 million bales in the previous season, this season it is projected to cross a record 40 million bales.

Fibre2fashion News Desk - India

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