By admin       2016-11-18

As market arrivals of cotton take a hit on account of cash shortages due to the demonetisation of high-value notes, prices of the fibre crop in domestic market have shot up over the past few days, even pushing up the international prices. The sharp increase in prices has left the textiles mills scrambling for cotton in the key producing States such as Maharashtra, Telanagana and Karnataka. Cotton prices, which had come down to around ₹38,000-38,500 per candy (of 356 kg) during early November from a high of ₹48,000-49,000 in August, have now rebounded over the past days and are ruling at ₹41,000 levels, mainly on account of the steep decline in market arrivals in the past few days. “The daily market arrivals around this (harvest) time of the year should be 1.5-2 lakh bales (of 170 kg each) across the country. But, now hardly around 30,000-40000 bales are coming into the market, resulting in a steep rise in prices over the past four days. We are unable to buy cotton at such high prices in States such as Maharashtra and Telangana,” said Manikam Ramaswami, Managing Director, Loyal Textile Mills Ltd.

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