Cotton prices have increased from around Rs 350 to Rs 400 per quintal and are likely to remain high due to an increase in international market prices. According to P Alli Rani, CMD, Cotton Corporation of India (CCI), cotton prices usually increase during this time in the season due to slowdown in arrival. And with increasing demand from spinning mills and ginners, these prices are likely to remain firm for sometime.

So far, 320 lakh bales have arrived in the market and the season is likely to continue for another 30 days. Arrivals have slackened to 0.5 lakh bales a day, thus increasing the prices. According to cotton ginners, market sentiment is positive due to the speculation that demand from China is surging due to depleting buffer stock. China, earlier, had a buffer stock for one-and-a-half years and this has now reduced to a year’s stock. Exports from India, therefore, are likely to touch 75 lakh bales instead of the originally estimated 65 lakh bales.