By Shrikant Kuwalekar and Kavita Desai
Monday, Mar 11
MUMBAI – The Cotton Corp of India is likely to commence sale of cotton procured in 2018-19 (Oct-Sep) from next month, a senior official at the state-owned agency said.
"We are planning to sell cotton procured in the current season most probably in the first week of April," the official told Cogencis. "The procurement has almost reached at 1.1 mln bales (1 bale = 170 kg). We expect 400,000-500,000 bales more in coming weeks," the official said.
Cotton Corp has been active in procuring cotton since last couple of months. Procurement has risen in February after prices fell to a near one-year low.
Of the total procured stocks, around 80% have been purchased from Telangana followed by Maharashtra. Some small quantity was also procured from Andhra Pradesh, karnataka, Madhya Pradesh and Odisha.
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. The government had raised the support price for cotton by 26% this year.
Prices have improved 2-4% from the recent lows and currently hovering around 20,800 rupees per bale. Trade officials have been expecting sharp rise in prices from the current level as China has started buying Indian cotton from the last one month.
In the last two-three weeks, the country is likely to have bought over 600,000 bales from Indian traders. However, Cotton Corp's sales might cap the upside in prices if not weigh down the same, trade sources said. == End == (Source: Cogencis.com)