Prices of Indian cotton have elevated 5% in the previous month, following the bullish trend in worldwide prices. However, cotton exports are robust as Indian cotton is cheaper than the abroad varieties. Traders, millers, and brokers are upbeat that the rising trend in cotton prices will maintain in 2021-22 owing to projections of decrease sowing in main cotton rising nations such because the United States, Brazil and India.

Cotton prices have elevated to Rs 46,000 per sweet of 356 kg from Rs 44,000 over the previous month because the home cotton manufacturing is predicted to be a lot decrease than anticipated earlier. As towards the sooner estimate of 40 million bales, the trade now expects the 2020-21 cotton manufacturing to be about 33 million bales. Projections of decrease output in the following cotton crop in main cotton-producing nations together with the US and Brazil as farmers shift to maize and soybeans, which have given higher returns, have additionally supported home prices. Indian cotton prices being 13% cheaper than the prevailing international cotton prices, exports are anticipated to be larger than earlier estimates of 6 million tonnes. The trade is keenly awaiting the choice of the Pakistan authorities concerning the import of cotton from India.

Thanks to good prices in the open market and good demand from merchants and millers, the Cotton Corporation of India (CCI) has offloaded 75% of its cotton inventory this season. “Our opening stock was 115 lakh bales of 170 kg each on October 1, when the new cotton season began. We procured 92 lakh bales of cotton at minimum support price (MSP) during the ongoing 2020-21 cotton season. Of the total stock of 207 lakh bales, we are now left with only 50 lakh bales,” mentioned Pradip Agarwal, chairman, CCI.