Revival of monsoon in the last two weeks in the key growing regions of Gujarat has pulled down prices of cotton. Weak demand and increased selling by farmers and ginners put pressure on prices further. Prices have declined about five per cent within a week.
On Friday, Gujarat Sankar-6 cotton was down by Rs 200 to Rs 36,000-36,200 a candy (of 356 kg).
About 3,500-3,700 bales (of 170 kg) cotton arrived in Gujarat and around 6,000 bales arrived across th ecountry.
During the week, cotton declined almost Rs 2,300 a candy from Rs 38,200-38,500.
In Maharashtra, the average grade cotton was quoted at Rs 35,800-36,200 a candy and A grade quoted at 35,000-35,300 .
According to a Rajkot-based ginner, many farmers and ginners are bringing cotton for sale. This has led to a fall in prices.
An expert said: “Due to ample rain, particularly in the Saurashtra region, the yield is likely to rise. This could lead to change in production estimates of the fibre in the State. However, overall production will decline.”
At present small and medium-scale southern mills are buying from Rajkot, Amreli, Bhavnagar, Gondal, Surendranagar, Kadi and Bharuch towns in Gujarat according to their need .