Prices for raw cotton have increased by around 25% and reached new heights of 5,000 to 6,000 rupees for every quintal in the past two months following an ascent in global costs. This has prompted farmers hurrying to the business markets, taking the day by day market arrivals to 3,10,000 bales on Monday, most noteworthy in the last 10 years, said the Cotton Association of India (CAI).
Overall cotton influx in the market till November 21 added up to 70,00,000 bales, 10,00,000 bales more than the past year period, as per the CAI. Prices for cotton likewise increased from the escalation in the costs of cotton seed used to create oil, which moved upwards with costs of the consumable oil complex.
Atul Ganatra, president, CAI. commented, "Alongside different reasons, increment in prices of cotton seed by about 10% has upheld the expansion in cotton seed costs".
"Subsequent to having a slow market for a very long time, there are numerous positive pointers that help a firm pattern in cotton prices. Cotton won't be excess this year, as the demand for the same is overcoming the supply, which will be lesser than expected," said Pradeep Jain, president, Khandesh Ginning and Pressing Association.
The Cotton Corporation of India has started procurement of cotton in 10 states, which prompted an expansion in prices in the open market. The MSP for cotton is kept at Rupees 5,825 for every quintal for kharif 2020.
"India dispatched 7 lakh bales of cotton in October. We were hoping to send out 8 to 9 lakh bales in November which may lessen to around 5 to 6 lakh bales as our costs have expanded," said Ganatra. Also the increase in the prices may hit the exports in the comming short period.
Sultan Riaz Chaudhury, president Bangladesh Cotton Association said, " In any case, Bangladesh is the greatest purchaser of Indian cotton and will keep on purchasing Indian cotton. "On account of the most limited lead time because of the closeness of the two nations, Bangladesh will keep on bringing in Indian cotton".
