Cot­ton Traders Ex­pect Prices to Stay Firm

The Economic Times - - Finance & Commodities - Jayashree.Bhos­ale @times­

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.

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