Enthused by the higher prices they are getting for their produce, cotton farmers have begun releasing their stocks in the market resulting in huge arrivals of the fibre.
As a result, cotton prices declined by Rs 500 a candy (of 356 kg), while kapas price slid by Rs 10-15 for 20 kg.
According to a cotton broker, farmers are now selling their produce more as they are getting good price. Moreover, demand at upper level has weakened after prices touched Rs 38,000 a candy last Friday.
In Gujarat, Sankar-6 variety decreased by Rs 400-500 to Rs 37,100-37,200. The V 797 A grade fetched Rs 29,000-29,500.
Kapas price declined by Rs 10-15 to Rs 930-950 for 20 kg in mandis and Kadi delivery kapas price stood at Rs 950-975.
About 40,000-41,000 bales (of 170 kg each) arrived in Gujarat against 35,000 bales last week. Total arrival of the fibre in the country stood at about 1 lakh bales.
Traders said that buyers were in a wait-and-watch mode after sharp rise in prices and subsequent correction. Arrivals also were reported slightly higher but still farmers’ holding on stock is huge.