Anala Rajkot

Apr 1, 2024

Cotton Market Trends: Price Fluctuations in Gujarat and North India

Cotton Market Trends: Price Fluctuations in Gujarat and North India

Cotton Price Dip in Key Indian Markets

The cotton industry witnessed a notable decrease in prices across Gujarat and the northern regions of India, primarily due to a slump in demand from spinning mills. In Ahmedabad, Gujarat, the price for the 29 Shankar-6 cotton variety experienced a reduction. It dropped by approximately $1,80 to range between $722,40 and $727,20 per candy. This trend underscores the immediate impact of demand shifts on market prices.

Price Adjustments Reflect Broader Market Sentiments

In the northern states, the impact was similarly felt with Punjab experiencing a decrease in spot delivery price by around $0,60, positioning prices at $72 to $72,60 per maund. Haryana and Upper Rajasthan reported a comparable trend, with cotton prices in Haryana falling to $71,10 to $72,30 per maund and in Upper Rajasthan to $66 to $73,50 per maund. These adjustments reflect a broader market sentiment influenced by the current demand from spinning mills.

Cotton Corporation of India's Role: Future Expectations and Stock Considerations

Despite the current market downturn, evening trading sessions on the ICE saw a rise in cotton prices, indicating a volatile market. Traders anticipate a subdued market activity for the remainder of the week, attributed to the fiscal year-end in March. Spinning mills are expected to regulate their cotton purchases based on immediate needs, considering many report low stock levels. This necessitates purchases in April, even as daily cotton arrivals are projected to decrease further.

With the Cotton Corporation of India (CCI) holding a substantial stock of 2.94 million bales as in last week of March, the market's future dynamics will closely depend on the interplay between demand from spinning mills and the availability of cotton. This balance is crucial for both the immediate price trends and the long-term health of India's cotton industry.

In summary, the recent downturn in cotton prices across Gujarat and North India sheds light on the complexities of the cotton market, driven by demand fluctuations and strategic stock management. As the industry looks forward, these factors will continue to shape the market's trajectory, underscoring the importance of strategic planning for stakeholders.
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