Cotton prices witness rise in past few days
The delay in arrival in market of remaining of cotton crop due to farmers holding back their crops coupled with low production and yarn mills going for bulk purchase of Cotton in the last leg of season, has resulted in rise in Cotton prices in past few days.punjab Updated: Feb 19, 2013 20:28 IST
The delay in arrival in market of remaining of cotton crop due to farmers holding back their crops coupled with low production and yarn mills going for bulk purchase of Cotton in the last leg of season, has resulted in rise in Cotton prices in past few days.
As per an estimate the over all production of Cotton in three northern states of Punjab, Haryana and Rajasthan was expected about 10 lakh bails less than last years total production of 55 lakh bails.
Former president of northern India cotton association, Ashok Kapoor said that the factors including low production, holding of crop by farmers and increased purchase by the yarn mills in the region has increased the cotton prices from beginning of this month.
“About eighty percent of the cotton crop of region has already been marketed. Keeping in view that only 20% of the crop was left to sold; the farmers have hold back their crop wanting better prices, resulting in late arrival of crop in market contributed in increase in prices in market,” he said.
Kapoor expressed that the third main reason behind the rise in prices is that yarn mills in the region have gone all out for purchase of cotton now. “In the initial phase of season, yarn mills had not done so much purchasing expecting that prices of cotton will be lowered due to decrease in exports, that is mainly on account of considerable decrease in import by China,” he expressed.
As the season is coming to an end, yarn mills have gone for big purchasing, pushing the Cotton prices to higher side. As per an estimate about 60 lakh bails of cotton have been exported till now even as only small portion of crop is left to be marketed, where as the export last year was of about 125 lakh bails.
President of association, Rakesh Rathi said that cotton prices have increased by about 5% from first week of February. “A particular variety of cotton that was available for Rs 3700 per 37 kg is now available at Rs 3900 for this quantity. Similar rise has been witnessed in cotton prices in Haryana and Rajasthan also,” he expressed. “The over all production of crop across India was expected to be about 315 lakh bails this year compared to 355 lakh bails last year,” he said.