Cotton prices fell due to weak demand from textile mills

30-Jul-2024 03:09 PM

Rajkot. Due to the decrease in export demand for cotton yarn and cotton textiles, the demand for cotton in textile mills has weakened, due to which its price has come down to below Rs 60,000 per candy (356 kg) in the domestic market.

Industry analysts say that there may be some improvement in prices from the second week of August.

The situation was further complicated due to the riots and agitation of students in Bangladesh. About 150 people were killed in this and the business came to a standstill for a few days.

A broker from Raichur says that the yarn business has slowed down. It was being exported to Bangladesh in small quantities, but that also stopped due to the student agitation.

Similarly, according to a trader from Rajkot, the demand for Indian cotton yarn was only in Bangladesh, but after the curfew was imposed there,

the importers stopped ordering goods from India. Now the situation is gradually improving and it is expected that the business will be back on track from mid-August.

The government agency - Cotton Corporation of India (CCI) has a stock of about 20 lakh bales of cotton which was purchased from farmers at the minimum support price (MSP).

In view of the weak demand, the corporation has reduced the selling price of its stock of cotton by Rs 1800 per candy.

The price of Shankar-6, the benchmark variety of cotton for export, fell to Rs 56,800 per candy on 29 July.

The spot price of cotton i.e. non-processed cotton in the commodity exchange fell to Rs 1506.50 per 20 kg and the price of cotton in the wholesale market of Agricultural Produce Marketing Committee (APMC) located in Rajkot remained at Rs 7505 per quintal. On the other hand,

the price of cotton in the international market has also fallen to below 70 cents per pound. Cotton futures for December delivery on the New York Exchange (IPE) fell to 69.01 cents per pound (Rs 45,800 per candy) on the previous day.