Cotton Prices Hold Steady in North Indian States Amid Limited Purchases by Mills

New Delhi, June 15 (Commodities Control): Cotton prices across major markets in North Indian states of Punjab, Haryana, and Rajasthan maintained stability for the second consecutive day on Saturday, largely influenced by subdued buying activities from spinning mills. The market also witnessed a decline in daily arrivals of Kapas, contributing to the steady price movement.

In the futures market, ICE cotton prices showed a mixed trend on Friday. The July-24 futures contract dipped by 0.38 cents to 70.97 cents, while the December-24 contract saw a modest increase of 0.35 cents, reaching 72.14 cents. Similarly, the March-25 futures contract edged up by 0.12 cents to 73.43 cents, reflecting varied investor sentiments.

Traders attributed the stable domestic prices to the ongoing mixed trend in ICE cotton futures, coupled with weaker-than-usual local and export demand for cotton yarn. This scenario has deterred spinning mills from aggressive purchasing, opting instead to meet immediate production needs. Consequently, the outlook for cotton prices remains conservative with limited prospects for significant upward movement in the near term. Prices of cottonseed, accompanying Kapas in these states, have also stabilized accordingly.

Meanwhile, according to the Indian Meteorological Department (IMD), North Indian states including Punjab, Haryana, and Rajasthan have experienced a significant deficit in rainfall from June 1 to June 14, further influencing market dynamics.

Market reports indicated that daily arrivals of Kapas totaled 550 bales (1 bale = 170 kg) in the major producing markets of these states, marking a decline from the previous session's 700 bales.

In terms of pricing, Kapas was quoted at Rs 6,500 to Rs 6,800 per quintal in Punjab and Haryana, while prices in Upper Rajasthan ranged from Rs 6,600 to Rs 6,900 per quintal. Cottonseed prices were reported at Rs 2,650 to Rs 3,150 per quintal in Punjab and Haryana, and Rs 2,700 to Rs 3,300 per quintal in Upper Rajasthan.

Spot prices for cotton delivery in various markets showed slight variations: in Punjab, prices ranged from Rs 5,675 to Rs 5,700 per maund (1 maund = 37.32 kg), equivalent to Rs 54,000 to Rs 54,300 per candy (1 candy = 355 kg). Haryana recorded spot prices of Rs 5,600 to Rs 5,625 per maund, translating to Rs 53,300 to Rs 53,500 per candy. In Upper Rajasthan, spot prices ranged from Rs 5,400 to Rs 5,875 per maund, corresponding to Rs 51,400 to Rs 55,900 per candy. Meanwhile, in Pilani, Rajasthan, spot prices were quoted at Rs 5,400 to Rs 5,875 per maund. Lower Rajasthan witnessed a rise, with spot prices reaching Rs 56,300 to Rs 56,500 per candy.

(By Commodities Control Bureau; +91-9820130172)