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Cotton prices surge due to heavy demand
Jan '11
Rise in prices of cotton across the globe and hike in demand for cotton by the mills in South India have increased the prices of cotton to Rs 50,000 per candy (356 kg) on Thursday.

The price of Shankar-6 cotton rose to Rs 50,000 per candy in Rajkot, whereas in Maharashtra, its price stood at Rs 49,400 per candy. The price of Brahman Bunny touched Rs 50,800 per candy in Mumbai, whereas the price of MCU-5 was quoted at Rs 52,500 per candy.

In Rajkot, prices of raw cotton reached above Rs 1,100 for a maund of 20 kg, whereas at a distance of 100 km from Rajkot, the price of raw cotton was quoted between Rs 1,100-1,600 per maund in the market. On Thursday, 1,190 tons of cotton arrived in Rajkot against 940 tons on Wednesday.

In Andhra Pradesh, raw cotton price in Khamman ruled at Rs 5,100 per quintal against Rs 5,000 which was quoted on Wednesday in spite of the high cotton arrival of 3,541 tons. The prices rose up to Rs 5,640 per quintal in Karimnagar.

Estimates of cotton production for this season which will be over in September, 2011 has been increased by the Cotton Advisory Board (CAB) in December, 2010 to 32.9 million bales against the earlier estimates of 32.5 million bales.

As per the information provided by the Cotton Corporation of India, cotton arrivals till January 23 had been recorded at 17.676 million bales against 16.5 million bales recorded during the corresponding period in the previous year.

Cotton production in Gujarat this year is estimated at 10.3 million bales, whereas in Maharashtra, it is estimated to be 9.2 million bales. In Andhra Pradesh, it is estimated at 5.5 million bales.

Fibre2fashion News Desk - India

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