By admin       2019-01-31

The Cotton Corporation of India (CCI) has already been making purchases at MSP. According to sources, so far about 6 lakh bales of cotton have been procured with about 80 per cent from Telangana alone and the rest from Maharashtra, Odisha, Karnataka and Gujarat. Sources estimate that CCI procurement may gain momentum in the coming weeks till February end. Last year, CCI had purchased about 3.5 lakh bales at MSP. Exports have been slow on lack of price parity. “But so far we have been able to ship about 23 lakh bales (each of 170 kg) till the end of January, which is still a good quantity and with a weak rupee, we are seeing parity returning for exports,” said CAI’s Ganatra. “There is no demand at present. Since Diwali there has been slackness in the consuming sectors such as yarn makers. Considering US-China trade situations, and the uncertainty on the truce, we don't see any long-term bullish trend. On the other hand, in the event of lower crop projections, there are less chances of a further downside in prices,” said Ahmedabad-based cotton expert Arun Dalal. Exporters however, believe that a spurt in prices is likely in the event of a US-China trade truce. “We are seeing favourable rupee conditions for the past few days and exports are taking place in the neighbouring countries. Export contracts are being offered at around 74-75 cents per pound. International cotton prices may firm up from here if China agrees to buy US cotton. This will fuel prices in the domestic market, too,” said a leading cotton exporter from Ahmedabad. Cotton futures on the Intercontinental Exchange (ICE) will have a direct impact on Indian prices. ICE cotton futures traded at 74.13 cents on Wednesday. Any spurt in ICE will make a favourable case for Indian cotton exports. Courtesy – The Hindu Business Line

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