Cotton prices slump by Rs 2,000 per candy on exports ban

Cotton prices in Gujarat, which is amongst the largest producing states of the commodity, have slumped by nearly Rs 2,000 per candy following the ban on cotton exports, a top official said here today.

"The per candy price of good quality (Shankar-6) lint cotton have come down from around Rs 29,000 per candy to Rs 27,000 in Gujarat, post the ban on exports," a top Cotton Corporation of India (CCI) official told PTI. One candy is equal to 356 kgs.

The per candy prices of lint cotton in the state were ruling firm at Rs 29,000 to Rs 29,500 per candy in the first week of April, a CCI official said. The Central government first increased the export duty to Rs 2,500 per tonne on April 9 and then on April 19th imposed a ban on cotton exports. According to CCI estimates, there is still unsold cotton stock of nearly 10 lakh bales with the farmers here, and equal quantity of stock is stuck up with the ginning mills.

"The per candy price of desi short staple cotton known as Kalyan V-797 variety have come down by Rs 2,500 in the last ten days," Managing Director Gujarat State Co-operative Cotton Federation (GSCCF) N M Sharma said.

Arrival of V-797 begins from February and lasts till May end, because its a usually long cotton season in the state, he said.