Cotton Prices Surge in North Indian States Driven by Spinning Mills'' Demand; Arrivals Improve

New Delhi, March 26 (Commodities Control): Cotton prices witnessed a notable upswing on Tuesday across the mandis of North Indian states including Punjab, Haryana, and Rajasthan, propelled by increaseed demand from spinning mills. Concurrently, the daily arrival of Kapas in these states' mandis also showed an uptick.

Monday sawed uptrend in ICE cotton futures prices. In the May-24 futures contract, prices surged by 0.59 cents to reach 92.12 cents, while the July-24 futures contract saw a rise of 0.78 cents to 92.63 cents. The December-24 futures contract similarly ascended by 0.09 cents to 84.04 cents. Today, cotton prices commenced on a higher note in electronic trading on ICE.

Traders attribute this surge to the closure of cotton prices at a higher mark in the global market on Monday, with prices continuing to improve in ICE's electronic trading today. Consequently, purchases from the spinning mills of North Indian states saw an uptick. However, with March coming to a close and the festivities of Holi leading laborers back to their villages, business activity is anticipated to remain subdued this week. Mills are likely to procure cotton only as per immediate requirements. Given the lower inventory levels in spinning mills of these states, procurement is expected to intensify in April, potentially driving prices up next month. Notably, Kapas and cottonseed prices remained stable across these states.

Arrivals of Kapas in the producer mandis of these states totaled 8,300 bales, with each bale weighing 170 kg, reflecting an increase from the previous trading day's 7,500 bales.

In Punjab and Haryana, Kapas prices ranged from Rs 6,600 to Rs 7,200 per quintal, while in Upper Rajasthan, prices hovered between Rs 6,700 and Rs 7,300 per quintal.

Cottonseed prices stood at Rs 2,300 to Rs 2,500 per quintal in Punjab and Haryana and Rs 2,400 to Rs 2,600 per quintal in Upper Rajasthan.

Contrarily, the domestic futures market witnessed a downward trajectory in cotton prices today. The April-24 futures contract for Kapas on NCDEX weakened by Rs 2.5 to Rs 1,538.5 per 20 kg.

Spot delivery prices for cotton in various regions were as follows:
- Punjab: Rs 6,000 to Rs 6,025 per maund (i.e., Rs 57,100 to Rs 57,300 per candy)
- Haryana: Rs 5,950 to Rs 5,975 per maund (i.e., Rs 56,600 to Rs 56,800 per candy)
- Upper Rajasthan: Rs 5,525 to Rs 6,150 per maund (i.e., Rs 52,600 to Rs 58,500 per candy)
- Pilani, Rajasthan: Rs 5,525 to Rs 6,150 per maund
- Lower Rajasthan: A surge from Rs 57,200 to Rs 59,500 per candy.


(CommoditiesControl Bureau; +91-9820130172)