Cotton Prices Decline in North Indian States Amid Reduced Purchases and Stable Arrivals

New Delhi, June 29 (Commodities Control): Cotton prices softened in the markets of North Indian states Punjab, Haryana, and Rajasthan on Saturday. The decline is attributed to reduced purchases by spinning mills at increased prices, while daily arrivals of Kapas remained stable in these regions.

ICE cotton futures prices experienced a second consecutive day of decline on Friday. The October-24 futures contract price fell by 1.93 cents to 71.98 cents. Similarly, the December-24 futures contract saw a drop of 1.89 cents to 72.69 cents, and the March-25 futures contract decreased by 1.63 cents to 74.36 cents.

The Kapas producing areas in North India are experiencing unfavorable weather, with rainfall reported in several regions. Traders indicated that the over 3% drop in ICE cotton futures on Friday has led to decreased demand from North Indian spinning mills at higher prices. Consequently, cotton prices have softened, though traders are cautious about predicting a significant decline.

Many spinning mills in these states have lower stockpiles of cotton. Furthermore, the current Kharif season has seen reduced Kapas sowing compared to last year, coupled with reports of pink bollworm infestations in several areas. This situation could lead to a decrease in the production estimate for the new crop. Alongside Kapas, cottonseed prices have stabilized in these states.

According to the Ministry of Agriculture, Kapas sowing nationwide has reached 59.13 lakh hectares in the current Kharif season, up from 36.30 lakh hectares in the same period last year. The Indian Meteorological Department (IMD) reported a significant deficit in rainfall for North Indian states between June 1 and June 28, with Punjab receiving 53% less rainfall than normal, Haryana 46% less, and Rajasthan 8% less.

The arrival of Kapas in the producing mandis of Punjab, Haryana, and Rajasthan was recorded at 400 bales, consistent with the previous working day's arrivals. In Punjab and Haryana, Kapas prices ranged from Rs 6,600 to Rs 7,100 per quintal, while in Upper Rajasthan, prices were between Rs 6,700 and Rs 7,200 per quintal. Cottonseed prices were quoted at Rs 2,900 to Rs 3,250 per quintal in Punjab and Haryana, and Rs 3,000 to Rs 3,500 per quintal in Upper Rajasthan.

In terms of spot delivery, cotton prices in Punjab were quoted at Rs 5,800 to Rs 5,825 per maund (Rs 55,200 to Rs 55,400 per candy). In Haryana, the spot delivery prices were Rs 5,675 to Rs 5,700 per maund (Rs 54,000 to Rs 54,300 per candy). Upper Rajasthan saw spot delivery prices ranging from Rs 5,500 to Rs 5,900 per maund (Rs 52,400 to Rs 56,200 per candy). In Pilani, Rajasthan, spot delivery prices were Rs 5,500 to Rs 5,900 per maund, while in Lower Rajasthan, prices stood at Rs 56,600 to Rs 56,800 per candy.




(By CommoditiesControl Bureau: +91-9820130172)