By admin       2017-10-23

Oct 19, 2017 - Pune: Prices of quality cotton crop are likely to remain above the minimum floor price set by Maharashtra until early January, offsetting the impact of increasing supplies of the summer-sown textiles fibre. Demand from local mills and exporters should keep the prices of dry and quality cotton higher than the minimum price set by the government, traders said. The Cotton Corporation of India is set to open its procurement centres in major cotton-growing states. However, traders from Maharashtra, the second-largest cotton producer, believe that prices may not drop much below the minimum support price until DecemberJanuary. “We expect cotton prices to remain between Rs 37,000candy and Rs 38,000candy (each candy of 356 kg) in December,“ said BS Rajpal, a Maharashtra-based trader. At present, prices range from Rs 38,200 to Rs 39,000. With the arrival of new crop slowing down after the October rains, prices had increased marginally. However, prices stabilised soon as the cotton now available has higher moisture content. “Cotton prices have been declining gradually. After rising for a short while due to the recent rainfall, prices have again fallen back to their earlier lev els,“ said J Thula sidharan, chair man, Indian Cotton Federation. Pakistan, a tradi tional buyer of In dian cotton, has currently banned cotton imports from its neighbour. However, trade sources say that Pa kistani businesses have demanded the resumption of cotton imports from India. In the medium to long term, Indian traders are keeping an eye on China. As cotton-producing countries expect a bumper crop, a fall in global prices should induce Beijing to procure. That should provide a pricing floor for the Indian output.

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