Cotton Price: Cotton arrivals have reduced, yet why is the price not increasing in the market?
Cotton Prices Steady Despite Drop in ArrivalsIn the last two-three weeks, the arrival of cotton in the domestic market has reduced significantly. Therefore, it was expected that there would be a good improvement in the price. However, the start of cotton sales by CCI has affected the price.The average price of cotton is between Rs 7,300 and Rs 7,800. Experts estimate that CCI's cotton sales and selling prices will continue to have an impact on the market in the future.Cotton production in the country has decreased this year. Production is estimated to be stable at 29.1 million bales. Of these, CCI bought about 1 crore million bales. That is, about 35 percent of the country's total production was purchased by CCI alone. This means that CCI is the largest cotton stockist in the country. Therefore, the market pays attention to how CCI sells cotton and determines the selling price. This will also affect the market.Production decreased in the country. But the industrial use of cotton is good. Therefore, there is a demand for cotton. On the other hand, cotton prices are low in the international market. Even when prices in the country were lower than the guaranteed price, prices in the international market were also low.Therefore, industries bought cotton as required. Industries have not shown interest in storage. Therefore, even though the price of cotton in the domestic market was lower than the guaranteed price, CCI continued to receive more cotton. Industrial purchases did not increase as expected.After the end of March, the arrival of cotton in the market decreased. In the last two weeks, the arrival was less than 50,000 bales and now it has come down to less than 40,000 bales. At present, about 35,000 bales are being received. Farmers were expecting that prices would rise after the arrival of their produce decreased significantly. But this does not seem to be happening. Prices are seen between Rs 7,300 and Rs 7,800.CCI's sales increasedAlthough farmers' cotton is coming to the market for sale in less quantity, CCI's sales have increased. CCI has sold 2.5 million bales of cotton out of the total goods purchased so far. It is also known that about one and a half lakh bales of cotton were sold on April 21.So far, the highest sales have been in Maharashtra. CCI has sold about 11.5 lakh bales of cotton in Maharashtra so far. More than 5 lakh bales were also sold in Telangana. About 4 lakh bales were sold in Gujarat.read more :-Rupee lower 6 Paisa Against Dollar, Closes at 85.18
