May 23, 2019, 08.15 AM IST
ReutersTraders were expecting cotton prices to touch Rs 50,000 per candy soon.Pune: Cotton prices are expected to remain range-bound in India till June-end, even as concerns about cheaper imports owing to China-US tariff war have capped the bullish trend in the domestic market.“Although cotton prices have softened a bit in May, there is no buying interest in the market,” said Pradeep Jain, president, Khandesh Ginning and Pressing Association.On May 13, the US increased tariff on $200 billion worth of Chinese imports 10 per cent, escalating the trade war between the two countries. As a result, international cotton prices came under pressure, making imports feasible for Indian buyers who were worried by physical shortage of the fibre crop.“There is very less buying and selling of cotton at present as everyone is in wait-and-watch mode,” said RS Rajpal, director, Manjeet Cotton.According to the central government’s fourth advance estimate, India’s cotton production in 2017-18 was 34.89 million bales of 170 kg each. For 2018-19, the Cotton Advisory Board, a government body, has estimated production of 36.1 million bales in November 2018. However, it has not yet revised its November estimate, while the Cotton Association of India, which represents traders, has revised the 2018-19 cotton production estimate to 31.5 million bales, down 9.7 per cent from the previous year’s figure.As domestic production of the fibre crop declined in 2018-19 owing to drought, cotton prices increased to Rs 46,300 per candy (of 356 kg each) on May 2 from Rs 41,700 per candy on March 1. Traders were expecting cotton prices to touch Rs 50,000 per candy soon. However, prices have fallen to Rs 44,500 per candy in the spot trade.Also Read
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