Domestic cotton prices have soared to a record high of ₹63,000 per candy (356 kg) as the global market has surged on low production, rising demand and supply constraints.

On the Intercontinental Exchange (ICE), New York, cotton prices have gained a tad over 50 percent year-on-year rising to 108.67 cents a pound (₹66,025 a candy).

 

With the quality of the cotton crop reported to be good, he expects Indian offers to soon be at par with global rates. “Indian cotton prices will be near international rates,” said CCI’s Agarwal.

 

Cotton Association of India (CAI) President Atul Ganatra said the cotton market is expected to be steady between ₹62,000 and ₹65,000.

 

Almost every player in the industry is of the opinion that cotton exports could be lower at 50 lakh bales this season (October 2021-September 2022) compared with 75-80 lakh bales last season. “India might export a minimum 50 lakh bales,” said Poppat, while Agarwal put the figures at 40- 50 lakh bales.

 

“Indian cotton exports will be reduced by 35 percent from 78 lakh bales (last year) to around 45-50 lakh bales this year,” said Ganatra.

 

SIMA’s Selvaraju said the Committee on Cotton Production and Consumption (CCPC) had pegged the carryover stocks at 120 lakh bales and if additional 10-15 lakh bales of cotton would have been consumed or exported, ending stocks could be 105 lakh bales.

 

According to estimates of CAI, a trade body, the carryover stocks are estimated at 82.50 lakh bales.

 

Source: thehindubusinessline.com