Fresh arrivals of raw cotton opened on a strong note, with mandis in Punjab and Haryana seeing up to 20% higher rates in the first 10 days of September as against the corresponding period last season on account of steady demand. On Wednesday, the rates were quoted at Rs 4,000-5,200 per quintal in some mandis of Punjab.
In the first week of September 2012, raw cotton was sold for Rs 3,500-4,000 per quintal due to sluggish demand in the domestic and international markets.
Though arrivals are still low, farmers are happy with the initial rates of raw cotton. Traders expect the rates of the fibre crop to be range bound due to less carryover stock and strong demand in the coming days.
Citing strong dollar and limited carryover stock in the markets, the North India Cotton Association (NICA) president Mahesh Sharda said, "Prices of cotton are hovering at Rs 4,800-5,200 per quintal in various markets of southern Punjab."
Another cotton trader and former NICA chief Rakesh Rathi said the rates of ginned cotton and yarn are rising due to surge in rates of dollar along with low stocks from the previous season. Perception of damage to cotton crop in some districts of Punjab due to floods is also making the traders buy the crop at higher rates."
Meanwhile, expressing delight over attractive rates for their produce, farmers are hoping for an increase in prices with the arrival of better quality raw cotton. "We are happy to get Rs 5,000 per quintal and hope the rates rise further in the coming days," said a cotton farmer Angrej Singh at Mansa grain market. Another farmer Mohinder Singh said on Tuesday that a cotton trader had offered him Rs 5,200 per quintal for raw cotton.
Cotton crop has been damaged due to floods in Muksar and Fazilka - two major growing districts of Punjab.
Punjab and Haryana account for nearly 13-14% of India's total cotton output. Cotton was sown over 5.20 lakh hectares in Punjab and over 6 lakh hectares in Haryana. The target for cotton output in Punjab and Haryana for the 2013-14 crop year (ending on August 31, 2014) is 19.58 lakh bales (1 bale=170 kg) and 26.82 lakh bales, respectively, sources said.
Source:- timesofindia.indiatimes.com
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