Cotton Association estimates price rise to Rs 75,000 per candy in June-July

Mumbai, Apr 14 (KNN) According to the Cotton Association of India (CAI) the price of cotton is likely to increase to Rs 70,000-75,000 per candy in June-July in India, reported CNBC TV18.

Currently Indian mills are seeing a good demand for cotton due to high consumption of cotton.

But the global cotton prices are trading at a four-month low.

“At present, Indian cotton prices are at Rs 62,500-63,000 per candy. It looks like the rates will be steady now but after May, cotton arrivals will start reducing and cotton prices will slowly go up,” said Atul Ganatra, President, CAI.

“We assume cotton prices may touch Rs 70,000-75,000 per candy in June-July in India,” Ganatra said.

The increase in cotton prices can be attributed to the weak demand globally, which has led to a decrease in cotton exports this year. Exports were 42 lakh bales last year, but they are expected to be around 25 lakh bales this year.

“Last year, our export of cotton was 42 lakh bales but this year, we expect cotton export will be around 30 lakh bales. But looking at higher Indian cotton rate, we may reduce cotton estimation export from 30 lakh bales to 25 lakh bales,” he said.

“Looking at lower cotton production and higher Indian cotton consumption, very soon Indian status of net cotton exporter country will change to net cotton importer country,” he added. (KNN Bureau)