Cotton Prices Dip in North India on Sluggish Demand; Daily Arrivals Increase

New Delhi, April 12 (Commodities Control): Cotton prices dropped further on the third consecutive day in the markets across the North Indian states of Punjab, Haryana, and Rajasthan due to subdued demand from spinning mills. However, an increase in daily arrivals of Kapas witnessed in the mandis.

The downward trend reflects movements in international markets, where ICE cotton futures also declined on Thursday. The May-24 futures contract declined by 1.94 cents to close at 83.37 cents, while the July-24 contract dropped by 1.82 cents to 85.28 cents. The December-24 contract saw a decrease of 0.74 cents, settling at 80.69 cents.

Meanwhile, there is a mixed trend in the ICE cotton prices during today's electronic trading, which has influenced the domestic markets as well.

The decline in ICE futures by three points on Thursday exerted additional downward pressure on domestic prices. According to experts, spinning mills in North India are currently buying cotton based on immediate need, contributing to the price decline over the past few days. The experts further highlighted that the recent dip in global cotton prices has squeezed exporters' margins, with many mills opting to avoid building new inventory under current conditions.

Consequently, domestic cotton price movements are expected to closely track global market trends. Meanwhile, prices of kapas have stabilized in these regions, but cottonseed prices continue to decline for a second day.

Market data shows that the arrivals of Kapas increased to 4,900 bales, each weighing 170 kg, up from 4,600 bales the previous day. Price for kapas ranged from Rs 6,600 to Rs 6,900 per quintal in the Punjab and Haryana markets, and Rs 6,700 to Rs 7,000 per quintal in Upper Rajasthan. Cottonseed prices quoted between Rs 2,200 and Rs 2,450 per quintal in Punjab and Haryana, and Rs 2,300 to Rs 2,600 per quintal in Upper Rajasthan.

Spot delivery prices also varied significantly across the region. In Punjab, cotton was quoted at Rs 5,900 to Rs 5,925 per maund (approximately Rs 56,200 to Rs 56,400 per candy).

Haryana saw prices ranging from Rs 5,800 to Rs 5,900 per maund (Rs 55,200 to Rs 56,100 per candy), while in Upper Rajasthan, prices spanned from Rs 5,500 to Rs 6,500 per maund (Rs 52,400 to Rs 57,600 per candy). In contrast, prices in Lower Rajasthan edged higher, ranging from Rs 58,500 to Rs 58,700 per candy.


(CommoditiesControl Bureau; +91-9820130172)