Cotton prices to remain firm as farmers hold crop

Cotton prices in Indian markets are likely to remain stable for the next few weeks as farmers are holding about 40 per cent of 341 lakh bales (of 170 kg each). Tight supply and high estimates of consumption will also help keep the prices firm. Prices of raw cotton have remained stable between Rs 5,900 and Rs 6,100 a quintal for the past few weeks.

Raw cotton prices have refrained from fluctuating owing to lower arrivals of crop and high consumption estimates. About 208-210 lakh bales of cotton that is 61 per cent of the estimated production has already arrived.

The Cotton Association of India has estimated this year's cotton consumption at 295 lakh bales that is 5 lakh bales more than last year's consumption of 290 lakh bales.

The Sankar-6 cotton candy (of 356 kg each) of Gujarat hovers around Rs 42,600 to Rs 43,300, according to Hindu Business Line.