Domestic Cotton prices have firmed up over the past few days due to an unexpected rains in the key growing regions of Maharashtra, Gujarat, Madhya Pradesh and Telangana and other States delayed the harvest of the fibre crop. Also, an increase in buying by millers has contributed to the uptrend.
Prices of old Cotton crop are hovering at around Rs 5,500 per quintal for raw Cotton, while fresh Cotton with higher moisture content quoted lower in the range of Rs 4,500-5,000 per quintal.
Cotton prices will maintain a bullish trend till full-fledged arrivals begin and daily arrivals hit about 1.5 lakh bales, trade sources said. Full-fledged arrivals are expected in the second week of November.
The Ministry of Agriculture estimated that the Cotton acreage during the 2017-18 season (October-September) will rise 12 per cent compared to last year. The yield is also likely to go up in view of the good monsoon witnessed across all Cotton-growing regions thus far.
The government estimated 2017-18 Cotton output at 322.73 lakh bales, while the trade sees a higher crop on better yields.