Cotton Prices To Slide In Gujarat

RAJKOT: The recent rains have caused some damage to the cotton crop in Gujarat’s Saurashtra region. This has caused a temporary spurt in prices but traders said the rates will come down in a week’s time when the supply becomes normal.

Moreover, improved weather conditions in Saurashtra are likely to push the prices of cotton down.

Cotton arrivals from the districts of Junagadh, Bhavnagar and Amreli, were expected to resume in the normal way, after the recent disruption due to rains.

Traders estimate the rain damage to the cotton crops around 5 to 7 per cent. The damaged quality of cotton is currently being sold at Rs 470 to Rs 480 per 20 kg at Rajkot.

The traders expect a delay of 10-15 days for fresh arrivals from the region. However, they expect the quality to improve and prices to come down.

The rains might delay fresh arrivals by 10 to 15 days. However, once the supply resumes, the cotton prices may further go down.

Cotton, currently, trades at Rs 21,000 per candy (356 Kg), after rising by Rs 100 due to supply disruption.

But the prices are likely to dip on improved weather in the Saurashtra area. It might come down by Rs 500 in the coming days and reach Rs 20,500 per candy.

The three-day spell of rains have caused some damage to the cotton crop in Una, Kodinar of Junagadh district and in some areas of the Bhavnagar district. The damage is estimated at 10 to 12 per cent in these areas.

The cotton crop in parts of the Amreli district, including Rajula, has also been affected. The damaged cotton is being sold at Rs 470 to Rs 480 per 20 kg at present, while the normal quality is being traded at between Rs 500 and Rs 520 per 20 kg, said a trader.

The state’s cotton production is likely to touch 1.3 crore bales (270 kg each) this year, according to the textile ministry. The traders expect cotton exports to touch 65 lakh bales this year compared with 55 lakh bales last year.