Cotton price dropped on the back of lower demand from mills on Friday. According to ginners and brokers, new arrivals have increased but still quality cotton is not coming; so buyers are keeping a distance.
An Ahmedabad-based cotton trader said: “Supplies in spot markets are rising, prices in overseas markets are low and the rupee is also getting stronger. All these factors are weighing on prices.”
In Gujarat, about 6,000-7,000 bales of arrived. Of these, about 2,500-2,800 bales were new.
Price of old kapas were Rs 890-925 for a maund of 20 kg and new kapas were traded at Rs 700-800 a
A Rajkot-based cotton broker said, “Currently, mills’ demand is low and it may come after mid-October as buyers are waiting for good quality new cotton.”
According to ginners, price may come under more pressure as arrivals are increasing and demand is slackening due to economic slowdown.
Last week, about 4,800-5,000 bales cotton arrived each day but this week, it increased to 7,000 bales a day. It is likely to touch 10,000 bales next week.