Now Reading: CCI hikes cotton price by Rs 700 per candy on firm demand
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CCI hikes cotton price by Rs 700 per candy on firm demand
The Cotton Corporation of India raised prices by Rs 700 per candy (356 kg) on Monday, driven by strong mill demand and depleting stocks, the Hindu Businessline reports. Domestic cotton prices have…
The Story in Brief
The Cotton Corporation of India raised prices by Rs 700 per candy (356 kg) on Monday, driven by strong mill demand and depleting stocks, the Hindu Businessline reports. Domestic cotton prices have firmed up tracking global cues, with futures on ICE for December hovering around 84 cents a pound. A potential delay in new crop arrivals due to a late monsoon is also supporting the trend, stakeholders said.
Cotton acreage has caught up to last year’s levels at over 106 lakh hectares. Gujarat, Telangana, and Madhya Pradesh reported higher sowing, while Maharashtra, Karnataka, and Rajasthan saw marginal declines. CCI has sold about 91.5 lakh bales so far, with unsold stocks at around 14 lakh bales. India’s closing stocks may fall to 75-80 lakh bales by end-September, indicating stronger domestic consumption than earlier estimates.
The Indian Opinion
The narrative that Indian cotton is in a crisis due to falling acreage is overblown, sowing has now caught up, and prices are rising on genuine demand, not panic. What needs scrutiny is whether the consumption spike is durable or just a shift to coarser yarns by mills. The real test will come when the new crop arrives in full: if arrivals exceed the projected 75-80 lakh bale closing stock, prices could soften sharply. Will CCI continue to buy aggressively then?
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
