Cotton costs take a knock as farmers offload shares

Costs of cotton within the futures commerce and on the farm gate have declined 8% and 12%, respectively, within the final fortnight, as farmers, who had been holding the crop anticipating costs to return to final yr’s record-high ranges, have began promoting their produce.

The each day arrival of cotton within the markets has elevated fivefold to 100,000 bales (every weighing 170 kg) from the historic common of 20,000 bales a day in Might. “I’ve not seen such unusually excessive arrivals in Might. Arrival of 100,000 bales a day is one thing that used to recover from by January/February,” stated Ravi Sam, chairman of Southern India Mills Affiliation (SIMA).

The June cotton contract on the MCX was down 3.05% on Monday. In spot commerce, cotton costs dipped from ₹62,000/sweet (every sweet is 356 kg) to ₹57,000 in Maharashtra, whereas the worth of uncooked cotton with seeds offered by farmers to ginners has fallen from ₹8,000/quintal a fortnight in the past to ₹7,000-7,200 on Monday.