The fall in cotton prices affected cotton arrivals.
AHMEDABAD: Sales of cotton in the market yard have been slow, with farmers opting for arrivals despite a bumper crop this season as compared to last year. Cotton should not be sold aggressively as current prices are low. According to Gujaratkot Association, Gujarat has seen. 75 lakh bales (170 kg each) cotton arrived in the mandi till May 31, of which about 15% is from Maharashtra. The state is currently witnessing an arrival of 30,000 bales every day, including raw cotton for ginning from Maharashtra. Besides, 18 lakh bales are expected to arrive by September. As demand remains muted, industry believes.Cotton prices will stabilize around Rs 59,000 per candy (356 kg) of cotton OT.
"Gujarat had a bumper crop of cotton this year and we estimate the total production to be around 93 lakh bales," said Ajay Shah, secretary of the Gujaratkot Association.
However, since farmers have better holding capacity, the market has been sluggish this season due to arrivals. "Cotton prices recently touched a low of Rs 56,000 per candy, prices have again moved up due to lower arrivals and higher international prices.
Spinners' Association Gujarat (SAG) vice-president Jayesh Patel said, "Currently spinning mills in Gujarat are running at around 80% capacity. Yarn prices for 30 combe have been seen at around Rs 250 per kg.
Many spinning mills have excess unsold inventory in the form of yarn, whose prices have not increased recently. "India's total cotton crop is expected to be around 35 million bales this year, so arrivals will continue till the end of the season in September."
