Cotton Prices Surge in Karnataka Amid Increased Demand and Declining Arrivals

New Delhi, June 25 (Commodities Control): Cotton prices in Karnataka witnessed a notable increase on Tuesday as spinning mills ramped up their purchases, coupled with a decline in daily arrivals of Kapas in the state's markets.

Traders attribute the rise in cotton prices to heightened buying activity by local spinning mills. Despite weaker-than-normal local demand for yarn, the Cotton Corporation of India (CCI) has raised its selling prices for cotton by Rs 400 to Rs 800 per candy over the past two days. This upward adjustment has spurred mills to increase their procurement, consequently pushing up cotton prices. In contrast, Kapas prices saw a rise of Rs 100 per candy, while cottonseed prices remained stable.

Sources indicate that the Cotton Corporation of India (CCI) further elevated its selling prices by Rs 200-600 per candy on Tuesday, reflecting the ongoing bullish sentiment in the market.

In the domestic futures market today, cotton prices showed mixed trends. The Kapas prices in the April-25 futures contract on NCDEX declined by Rs 6 to Rs 1,612 per 20 kg. Conversely, cotton prices in the July-24 futures contract on MCX surged by Rs 470 to reach Rs 58,250 per candy.

On Tuesday, the arrival of Kapas in Karnataka's mandis totaled 1,000 bales (170 kg each), marking a decline from the previous trading day's arrival of 1,500 bales.



(By CommoditiesControl Bureau: +91-9820130172)