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Lack of quality produce pushes up cotton prices to Rs 36,500 a candy

Slight improvement in demand from textile mills supports price uptrend

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Cotton

Vimukt Dave  |  Ahmedabad 

Image via Shutterstock
Image via Shutterstock

A dearth of quality produce and a fall in overall arrivals pushed up prices to Rs 36,000-36,500 a candy (356 kg= 1 candy). Improvement in demand from textile mills also supported the price uptrend.

According to industry sources, prices have gone up by almost Rs 500-600 a candy in the last one week, as arrivals declined to 40,000 bales (a bale of 170 kg), from 50,000 bales across India.

“The quality of the crop has not been good this year, as the crop was damaged due to pink bollworm pest in Gujarat and other cotton-producing belt in India, which has created shortage of quality cotton, leading to a rise in prices,” said Arvind Raichura, director of Balkrishna Ginning and Pressing.

Bharat Vala, president of the Saurashtra Ginners Association, said, “Lower production has decreased the arrival of . As supply is tight nowadays, many ginners have shut down their units. In Gujarat, almost 50 per cent ginning units are closed. The situation is similar in north and south India.” According to Vala, prices may hover around Rs 35,500-36,500 a candy till next season. In addition, kapas or raw prices have increased from Rs 950 to Rs 1,025 per 20 kg last month. Traders believe kapas prices may continue to increase, as farmers are expecting supply to remain constrained.

The Cotton Association of India (CAI) has estimated 34.1 million bales of cotton production for 2015-16, against 38.27 million bales in 2014-15.

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First Published: Tue, May 24 2016. 22:34 IST
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