Cotton arrivals tumble in Maharashtra
Cotton arrivals declined significantly in Maharashtra, the second-largest producer of the fibre crop, forcing ginning mills to operate at 25-30 per cent of capacity as farmers held back stocks on expectations prices will rise.
Cotton arrivals in Maharashtra have been ruling low at about 7,500 bales per day against the normal daily arrival of about 15,000 bales a day around this period of the year.
The daily all-India Cotton arrivals are currently at 75,000 bales to 80,000 bales of 170 kg each, according to Cotton Association of India.
While farmers are waiting for prices to rise to offload stocks, ginners are going slow on purchases, expecting rates to cool once the prices of Cotton seed soften with growing arrivals.
Raw Cotton prices have increased to Rs 5,850/ quintal in Maharashtra – more than the MSP prices for medium staple and long staple Cotton of Rs 5,150/quintal and Rs 5,450/quintal, respectively. Ginning mills have been operating at 25-30 per cent of capacity.
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