M.R. Subramani
Chennai, Dec. 14
Cotton prices continued to tumble on uncertainty over exports, despite arrivals being lower. Prices have dropped Rs 30 for a maund (of 20 kg) in the last four trading sessions.
“Prices on Tuesday dropped Rs 15 a maund. The best quality Shankar-6 cotton sold at Rs 881 a maund as demand from ginners was lower,” said Mr Kalpesh Posiya, a trader at Dhoraji Agricultural Produce Marketing Committee (APMC) yard, in Gujarat's Rajkot district.
“Quality cotton fetched Rs 895 a maund at the most. Otherwise, the general price trend was between Rs 840 and Rs 860,” said Mr Jaisukhbhai Patel, a trader at Gondal APMC yard, near Rajkot.
“Prices have been dropping since last week on uncertainty over exports. As prices are dropping, arrivals too are low,” said Mr Patel.
“Cues from overseas market, too, kept the prices lower,” said Mr Posiya.
Arrivals at Gondal were down at 600-700 bags (60 kg each) from 1,200-1,500 bags last week.
However, the global market looked up on Tuesday with prices rising five cents, the maximum allowed by ICE Futures US in New York, to $1.4597 a pound.
The Centre had allowed exports of 55 lakh bales (of 170 kg) from November 1 and the deadline for shipping the consignments is Wednesday. So far, about 25 lakh bales have been reported t have been exported but the Centre has said that it will have an exact figure on Wednesday.
The Government will also review exports on Wednesday based on the current situation.
Exports hit
Exports were hit by delayed arrivals of cotton in the market due to holidays and unseasonal rain in November.
Meanwhile, the Textiles Commissioner, Mr A.B. Joshi, told reporters in Mumbai that cotton production would not be lower than 325 lakh bales this year.
Shankar-6 was quoted in Mumbai at Rs 40,300 for a candy (356 kg), against nearly Rs 47,000 witnessed a month ago. Prices have been dropping since then on higher arrivals.
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