Ahmedabad, June 24 (CommoditiesControl): Today, the cotton market in Gujarat witnessed a significant uptick in prices, driven by robust demand from local spinning mills.
The Kapas producing areas of Saurashtra region in Gujarat experienced light to moderate rainfall this morning, leading to reduced arrivals of Kapas and cotton in the markets. As a result, cotton prices soared by Rs 100 per candy.
Sources report that the arrival of Kapas from Maharashtra into Gujarat has declined sharply, with only 5-7 carts arriving in Kadi-Saurashtra region. Market analysts attribute this reduced arrivals to farmers holding onto their stocks following the recent hike in minimum support prices by the Central Government. Farmers are reportedly optimistic about securing better prices in the upcoming season.
In the broader context, India's Kapas exports are projected to surge by two-thirds in the 2023-24 season, fueled by increased demand from mills in Bangladesh. Delays in import shipments from the US and Brazil have prompted Bangladeshi mills to turn to Indian suppliers, purchasing between 1 lakh to 1.50 lakh bales per month. Despite global market fluctuations, the Indian market experiencing minimal impact reported by traders.
As of today, cotton prices in the state stood at Rs 56300-56500 per candy for 29mm cotton, Rs 55900-56000 per candy for 28.5mm cotton, and Rs 38300-38600 per candy for V797 variety. The average price of Kapas ranged between Rs 1300-1520 per maund. Around 5500 bales of cotton, each weighing 170 kg, arrived in Gujarat today.
Experts highlight a concerning trend of decreased Kapas sowing in Gujarat this season, coupled with lower pre-monsoon rainfall in June. Early estimates suggest a 15 percent reduction in the sowing area compared to last year.
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(By CommoditiesControl Bureau: +91-9820130172)
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