Cotton Prices Decline in North India Amid Weak Demand; Arrivals Reduce

New Delhi, July 27 (Commodities Control): Cotton prices in the North Indian states of Punjab, Haryana, and Rajasthan experienced a downturn on Saturday due to subdued demand from spinning mills, coupled with a decrease in daily arrivals of Kapas in these regions.

The ICE cotton futures market saw a decline on Friday, with the December 2024 futures contract dropping by 0.91 cents to 67.99 cents, the March 2025 contract weakening by 0.9 cents to 69.76 cents, and the May 2025 contract falling by 0.89 cents to 71.13 cents. This decline follows a broader downturn in US agricultural markets and a decrease in oil prices, marking the lowest ICE cotton futures prices since October 2020.

The domestic cotton market reflects this downward trend, with weak buying activity from spinning mills and a slack in local cotton yarn demand. Additionally, the profitability of cotton exports from the domestic market appears strained. Consequently, prices for cottonseed and Kapas have also decreased in these states.

Weather conditions have not been favorable for cotton production. According to the Indian Meteorological Department (IMD), rainfall from June 1 to July 26 has been significantly below average: Punjab received 43% less rainfall, Haryana 39% less, and Rajasthan 1% less than normal.

Data from the Ministry of Agriculture indicates a 6.86% reduction in Kapas sowing across the country, with the total area under cultivation decreasing to 105.73 lakh hectares from 113.54 lakh hectares last year.

Daily Kapas arrivals in the mandis of Punjab, Haryana, and Rajasthan have reduced to 200 bales of 170 kg each, down from 300 bales on the previous working day.

Current Kapas prices range from Rs 6,700 to Rs 7,100 per quintal in Punjab and Haryana, while in upper Rajasthan, prices range from Rs 6,800 to Rs 7,200 per quintal. Cottonseed prices are quoted at Rs 3,000 to Rs 3,250 per quintal in Punjab and Haryana, and Rs 3,100 to Rs 3,450 per quintal in upper Rajasthan.

Spot delivery prices for cotton in Punjab are reported at Rs 5,800 to Rs 5,825 per maund, equating to Rs 55,200 to Rs 55,500 per candy. In Haryana, prices are quoted at Rs 5,725 to Rs 5,750 per maund, or Rs 54,500 to Rs 54,800 per candy.

Upper Rajasthan sees cotton prices ranging from Rs 5,550 to Rs 5,925 per maund, translating to Rs 52,900 to Rs 56,400 per candy. Pilani, Rajasthan, mirrors these figures, with prices between Rs 5,550 and Rs 5,925 per maund. Conversely, in Lower Rajasthan, prices have increased to Rs 56,600 to Rs 56,800 per candy for spot delivery.



(By CommoditiesControl Bureau: +91-9820130172)