Cotton (S6 29 mm) is quoting at Rs 20,794 per bale in Gujarat. Global cotton prices have fallen sharply and the rupee has strengthened by almost 6 per cent from its all-time low levels in November. This has made Indian cotton lose its export competitiveness. India has large quantity of exportable surplus and hence the domestic prices will come under pressure to reflect the same. Expect the S6 prices to soften to around Rs 20,100 per bale in the next couple of days.
VP-Research -Edelweiss Agri Services and Credit, Edelweiss Agri Value Chain