Cotton arrival gains momentum

Arrival of cotton in terminal markets across Punjab and Haryana has picked up by almost 40 per cent in the past few days.

As against an average arrival of 25,000-26,000 bales coming across various terminal markets(mandis) in Haryana, Punjab and Rajasthan, the arrival now has moved to 35,000 bales. The prices, however, have not moved up in proportion to arrival of cotton.

As per officials from Cotton Corporation of India, the average prevailing prices of kapas ruled at Rs 4,200 per kg as against Rs 5,000 per kg last year, 16 per cent dip in prices. Rakesh Rathi, president, north India cotton association maintained mills demand has improved from the mills side.

 

The arrival of cotton has moved up primarily as off take by mills has improved. With mills exhausting their available stock they have entered market for fresh purchases. In addition to this, members of ginning association adds the domestic demand has started picking up as yarn realisation are moving to better from stable. These all factors are contributing towards rise in take off of cotton from the terminal markets.

Members also believe this farmers have started realising remunerations for cotton this year would not be as high as last year, have started bringing the crop to the markets. Bhagwan Das Bansal, president, Punjab cotton factories and ginners association maintained stronger dollar also suggest things on export side could improve for cotton this year, thus helping the cause for cotton.

“We are expecting exports of nearly 1 crore cotton bales this year as well, which is similar to that of previous year,” Bansal added.