Cotton market expected to increase further!! Read report
There has been a significant rise in the price of Narma for the last 15 days. The prices of Narma BT cotton have gone above Rs 1000 of MSP and there is still a bullish atmosphere in Narma. Market experts say that as per the gap between demand and supply of Narma cotton, the prices of cotton may soon cross the level of 8000. While some people believe that the way the crop has been damaged, the prices may rise even more. The common prices of soft cotton in the spot markets of Haryana and Rajasthan remain between Rs 7200 and Rs 7500. If we talk about local cotton, its prices have crossed Rs 8000 and there is an upward trend in this too. Talking about Maharashtra and Gujarat, here also cotton prices are in the range of 7100 to 7500. The area under cotton in India has decreased by about 3.65 lakh hectares this year. This decrease has occurred due to weak rains in Gujarat and Maharashtra. Narma crop has been destroyed due to pink bollworm infestation in Haryana and Rajasthan. Due to lack of rain in a large area, the crops standing in the fields are drying up. All these are the reasons due to which the market feels that there may be a shortage of cotton in the market in the coming time. Last year, farmers got prices up to Rs 10,000 per quintal for soft cotton. This year also, farmers have stopped the soft cotton crop in the hope of increase in prices, due to which there is a decrease in arrivals in the market. This is the reason why there has been a continuous rise in the market for the last 15 days. The demand for yarn from China is slowing down and the environment for Narma cotton in the US market is also not very good. Narma cotton is getting big competition from artificial yarn. Therefore, it can be said that due to weak production and loss in cotton, the price may go beyond 8000.