Cotton Prices Decline in North India Amid Weak Demand from Spinning Mills

New Delhi, March 28 (Commodities Control): Cotton prices witnessed a decline on Thursday in the markets of North Indian states, including Punjab, Haryana, and Rajasthan, owing to subdued demand from spinning mills. Concurrently, the daily arrival of Kapas in these states' mandis also experienced a decrease.

The weakening trend in cotton prices was evident in the ICE cotton futures market on Wednesday. Prices in various futures contracts registered declines, with the May-24 futures contract seeing a decrease of 2.64 cents to 90.77 cents, the July-24 futures contract dropping by 2.42 cents to 91.44 cents, and the December-24 futures contract weakening by 0.96 cents to 83.34 cents. However, today's electronic trading of ICE displayed a mixed trend in cotton prices.

Traders attribute this decline to a three-point drop in cotton prices in the foreign market on Wednesday, leading to reduced purchases from spinning mills in North Indian states. Moreover, with March coming to a close, mills are adjusting their purchases according to immediate requirements, resulting in decreased business activities this week. Consequently, domestic cotton prices have witnessed a downward trend.

Experts suggest that mills in these states have relatively low outstanding cotton stocks, indicating a probable uptick in cotton purchases in April. Meanwhile, Kapas prices remained stable alongside cottonseed prices in the region.

As of March 26, 2024, the Cotton Corporation of India (CCI) reported a stock of 29.11 lakh bales of cotton purchased during the current crop season.

The arrival of Kapas in producer mandis of these states stood at 5,000 bales (one bale equals 170 kg), down from 7,000 bales on the previous working day.

In the mandis of Punjab and Haryana, Kapas prices ranged from Rs 6,600 to Rs 7,100 per quintal, while in Upper Rajasthan, prices varied from Rs 6,700 to Rs 7,200 per quintal. Cottonseed prices were quoted at Rs 2,250 to Rs 2,450 per quintal in Punjab and Haryana, and Rs 2,350 to Rs 2,550 per quintal in Upper Rajasthan.

The domestic futures market also reflected the declining trend in cotton prices. In NCDEX, Kapas prices in the April-24 futures contract weakened by Rs 3 to Rs 1,532 per 20 kg. Similarly, cotton prices in the May-24 futures contract on MCX dropped by Rs 80 to Rs 62,000 per candy.

Spot delivery prices for cotton in various regions were reported as follows:
- Punjab: Rs 6,025 to Rs 6,075 per maund (Rs 57,400 to Rs 57,900 per candy)
- Haryana: Rs 5,950 to Rs 6,050 per maund (Rs 56,700 to Rs 57,600 per candy)
- Upper Rajasthan: Rs 5,500 to Rs 6,150 per maund (Rs 52,400 to Rs 58,600 per candy)
- Pilani, Rajasthan: Rs 5,500 to Rs 6,150 per maund

Moreover, in Lower Rajasthan, spot delivery cotton prices rose from Rs 57,300 to Rs 59,300 per candy.




(CommoditiesControl Bureau; +91-9820130172)