Cotton prices likely to remain ‘low’ on good yield

• Punjab and Haryana, who have faced extensive damage to their crop by whitefly attack, may further compound as cotton prices are likely to remain “low” on the back of overall good crop yield and lower yarn prices.
• Industry experts have said raw cotton prices are also unlikely to remain higher this season as textile sector in the country was not in good shape.
• According to traders, the raw cotton prices at present are ruling at Rs 3,700-3,750 per maund (37.324kg) in Punjab which is about Rs 600 per maund lower than the rate prevailing in last year and there is a possibility of prices not rising.
• As cotton started arriving in mandis in Punjab, seed cotton prices are ruling at Rs 3,700-4,200 per quintal.
• If we see globally, there is an oversupply of cotton. Moreover, in India, the cotton output is expected at 370 lakh bales despite 8 per cent less acreage as there is likely to be higher crop yield.

Source: ET