Domestic cotton prices rising towards international levels
23 Feb '07
1 min read
VADODARA:
Domestic cotton prices which were earlier lower compared to international market prices, have been rising to international market prices on the back of recent corrections witnessed in the cotton market.
Lower cotton output compared to earlier estimates, decline in arrival of cotton and other factors are supporting firm trend in domestic cotton market, market sources say.
Presently domestic prices of cotton were being sold at Rs19,000 per candy whereas international prices were around Rs22,000 crore due to 10 percent import duty, said Kishor Shah of Central Gujarat Cotton Dealers Association.
The domestic prices stood at Rs 18,000 per candy in the previous week.
Noting the slow arrival of supplies, Shah pointed out that Cotton arrival were 90,000-1,00,000 bales per day at national level whereas in Gujarat it was at a rate of 30,000 bales per day.
Market sources also hoped that Cotton prices is likely to stabilise at Rs19,500 per quintal but cotton bought from mills may push up prices, market sources indicated.
Total production of cotton during season is expected to be around 255-260 lakh bales, traders said.
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