North Indian spinning mills begin cotton purchase in Guj

With cotton arrivals picking up in Gujarat, spinning mills from North India have started stocking cotton from Gujarat. Some mills today booked 20,000 bales of cotton at price of Rs. 23,000 to Rs. 23,100 a candy for October delivery.

So far, 1.35 lakh bales have already arrived in local markets in the state, of which 60,000 bales have been procured by spinning mills from North India. Currently, 18,000 to 20,000 bales are arriving daily in the market and the arrivals are likely to increase to 70,000 bales a day in the month of November.

"Yesterday, spinning mills sealed deals to the tune of 25,000 bales at a price of Rs. 23,200 to 23,700 a candy for October delivery," said Arun Dalal, a leading cotton trader in Ahmedabad.

 

Meanwhile, Cotton Corporation of India (CCI) has also started cotton purchases in Punjab to arrest further fall in cotton prices. There were reports of CCI buying 30,000 bales from Punjab yesterday.

The spot prices of Sankar-6 variety of cotton have declined by Rs. 500 per candy in past couple of days, Dalal added.