Our Correspondent Rajkot, June 10
Cotton price gained slowly and strongly on the back of short supply and good demand from domestic mills. According to market sources internationally, mainly in China, limited stock position may boost the export from India and it may support the price rise.
Gujarat Sankar-6 cotton was traded higher by Rs 200 to Rs 39,300-39,800 a candy of 356 kg. In some places the fibre was quoted at Rs 40,000. V 797 cotton A grade was offered at Rs 27,500-28,500. Kapas or raw cotton increased by Rs 5 to Rs 1,000-1,025 for 20 kg in Gujarat.
About 8,000 bales of 170 kg each of cotton arrived in Gujarat and 27,000-28,000 bales arrived in India. A cotton broker said that demand from domestic mills is very strong and it may further gain this month. Spinners were expecting that ginners would increase selling in coming days due to arrival of monsoon in key growing areas.
China’s massive cotton stockpiles have been interpreted as bearish for prices by the US Department of Agriculture, but analysts suggest a tight supply outside the country and the unwillingness of local textile mills to buy at auction, which will push prices higher into next season. (Source: The Hindu Businessline)