Cotton Traders Expect Prices to Stay Firm
Pune: Cotton traders expect Indian cotton prices to remain firm till October when the new crop arrives, or even rise marginally from the second half of August.
“Cotton prices are likely to increase from the second half of August as the there’s very little stock in the country, while the new crop may to be delayed due to the late sowing in Maharashtra and Gujarat,” said BS Rajpal, a cotton ginner from Maharashtra. There are four factors responsible for projection of firm price trends: tight position of cotton year-ending stocks, expected delay in arrival of new kharif crop due to delayed sowing, likely rise in demand from yarn manufacturers as more players get into GST, and currency situation. Rakesh Rathi, president, Indian Cotton Association, said, “Cotton prices will not fall from the current levels, and are likely to stay firm till October.” Cotton demand had remained subdued in July as the cotton value chain had been disturbed due to the impact of GST.