By admin       2019-03-28

MUMBAI – The Cotton Corp of India has commenced sale of the commodity procured so far in the current marketing season as open market prices have shot up by 1,200-1,400 rupees per bale in the past three-four weeks."Around 10,000 bales have already been sold via e-auction so far in the physical market of Telangana and Maharashtra," a source in the state-owned agency said.The 30-mm variety of cotton was sold at 47,000 rupees per candy (1 candy = 355.6 kg), slightly higher than current spot prices of around 45,500 rupees. After 26% year-on-year increase in 2018-19, the minimum support price for medium-staple variety of cotton is at 5,150 rupees per 100 kg, and that for long staple at 5,450 rupees per 100 kg. After conversion, the MSP equivalent price comes at 41,000-42,000 rupees per candy.In March, Cogencis had exclusively quoted senior officials that the agency would start selling on government account in the last week of March or early April. The agency has procured around 1.1 mln bales (1 bale = 170 kg) of cotton in the ongoing marketing season that started on Oct 1. Of the total procured stocks, around 80% have been purchased from Telangana followed by Maharashtra.The agency has also started purchasing the fibre crop from the open market on its commercial account amid bullish price indications due to falling supplies.The source told that so far 7,000-8,000 bales of cotton have been purchased on commercial accounts in Karnataka, Maharashtra, and northern states over the last few days.Cotton supply is dwindling quickly as 2018-19 crop is likely to be much lower than the initial projection of around 35 mln bales. The Cotton Association of India has pegged the crop at 32.8 mln bales after five consecutive downgrades, while many trade officials have put the number below 32 mln bales. In 2017-18, India had produced over 36 mln bales. End

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