Gold Silver Reports — Cotton may Turn Costlier with Fall in Acreage, Rains — A 12% drop in acreage and rains that hit soonto-be harvested crops have led to concerns over cotton supplies, making the fibre as much as 20% costlier than at this time last year.
Prices are ruling at ` . 5,400 per 100 kg of raw cotton, even as fresh crop has started arriving in the wholesale markets of Punjab and Haryana. Because of the prices, people are buying only as per their requirement, traders, ginner and millers said.
“The prices are higher than anticipated as arrivals are slow. Major spinning companies from Trident to Vardhman have entered the market, buying as per their requirement … trading companies from Louis Dreyfus, Glencore, Olam to Reinhart are watching the situation,“ said Rakesh Rathi, president of the Indian Cotton Association.
Rathi predicts raw cotton prices . 4,700-4,900 per 100 kg by to ease to ` December when arrivals will pick up across the country.
On Monday, the spot cotton lint (cotton without seed, accounting for roughly about a third of the weight of raw) price was ` . 21,970 per bale of 170 kg on the Multi Commodity Exchange of India (MCX). — Neal Bhai Reports