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Cotton Prices Hit 9-Month High In India, Global Surge Adds Pressure

Updated: Mar 02, 2024 05:50:41pm

Cotton Prices Hit 9-Month High In India, Global Surge Adds Pressure

New Delhi, Mar 2 (KNN) Cotton prices in India have surged to a 9-month high, breaching the Rs 60,000-mark per candy, driven by a combination of low crop arrivals and heightened demand.

This upward trend mirrors a broader global surge, with cotton prices reaching an 18-month peak, marking the most significant gains since September 2022, as reported by Moneycontrol.

In February 2024 alone, global prices surged by 27 per cent, while India saw a 16 per cent uptick.

The Intercontinental Exchange (ICE) futures, a key global exchange index, has observed significant interest, with 65-70 per cent open interest attributed to funds and speculators.

Against this backdrop, India's cotton exports have soared to a two-year high, reaching 400K bales in February.

Gujarat has been a major contributor, accounting for 42,000 bales daily, according to a report by the Gujcot association.

Indian cotton remains competitive in the global market, with exports estimated at 2.5 million bales for the fiscal year 2023-24. Key importing nations include China, Bangladesh, and Vietnam.

In terms of domestic supply, the arrival of cotton in India for the fiscal year 2023-24 totalled around 215 lakh bales, with 75-80 lakh bales sourced from farmers and 32 lakh bales held by the Cotton Corporation of India (CCI).

Trade accounted for an additional 18-20 lakh bales, underscoring the robustness of India's cotton sector amidst soaring prices and increased demand.

(KNN Bureau)


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