CCI starts buying cotton from Guj
After Punjab, Maharashtra and Andhra Pradesh, central government owned cotton procurement agency Cotton Corporation of India (CCI) has now started procuring cotton from Gujarat, the top most cotton producing state in the country.
Though CCI did not purchase cotton on Tuesday, the agency bought 200 to 250 bales on Monday this week from Karjan and Bodeli areas of Central Gujarat. The entry of CCI has provided cushion to tumbling cotton prices in Gujarats.
“The cotton prices had plunged to Rs 21,200 to Rs 21,300 last week. However, reports of CCI's buying have pushed up the prices to Rs 23,000 per candy on Monday. However, later, the prices came down again by Rs 200 to Rs 300 per candy on Monday to Rs 22,600 to Rs 22,300 per candy,” said Arun Dalal, owner of Ahmedabad-based cotton trading firm.
Citing reasons for rise in cotton price after it had dipped to Rs 21,200 level, Dalal said that sustained buying from spinning mills of Northern India provided support to declining prices and CCI's entry into market further helped prices to move up.
“However, a strike announced by mills in southern India brought down the prices today,” he added.
South Indian mills have decided to go on one day strike to protest against power cut and other issues, he said. At present, Gujarat is witnessing daily arrivals of 30,000 to 32,000 bales, which are expected to rise up in days to come.