Our Correspondent
Rajkot, Dec. 20
Cotton prices continued to rise across various markets on Monday as exporters tried to cover the needs and mills were also in fray.
On Friday, the Union Government said exports would continue until the permitted 55 lakh bales were shipped out of the country.
On Monday, prices increased Rs 700 to Rs 42,100-42,200 a candy (356 kg).
Cotton price at Rajkot was quoted on Rs 42,100-42,200 for a candy, compared with Friday price of Rs 41,500. Raw cotton was traded on Rs 900-930 a maund (of 20 kg), up by Rs 15 in Rajkot.
In Gondal, prices increased to Rs 900-930 a maund, up Rs 10 over Friday.
Mr Mahesh Patodia, a trader at Gondal market, said demand was heavy, leading to rise in prices.
Traders in Rajkot said that “Prices are increasing as mills are buying cotton more than exporters as they fear shortage of the material.”
A Rajkot-based trader said: “Price will move up more for coming 2 to 3 days and then it will be stabilise for some time.”
Mr Jaisukhbhai Patel, a trader at Gondal market, said arrivals were low compared with the demand.
“Arrivals are poor and the crop is feared to be low,” he said.
Meanwhile, the Cotton Association of India (CAI) has lowered its estimate for 2010-11 season (October-September) to 347.5 lakh bales against 357 lakh bales it forecast in October.
Gujarat, the largest cotton growing State in India is now estimated to produce 116 lakh bales, 4,00,000 bales short of the initial estimates.
About 70,000 bales of cotton arrive in Gujarat and 2.03 lakh bales arrive in India in a day.
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