Indian cotton candy (of 356 kg each) prices dropped 0.56 percent, closing at INR 60,630, mainly due to concerns about demand from China, the country’s main buyer.
Arrival of the new cotton crop has begun in parts of South and North India, with prices currently above the minimum support price (MSP).
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More arrivals are expected after September 15.
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Cotton sowing acreage has declined in India in this season, as against the previous cotton season, mainly due to deficit rains in the state of Gujarat, which is the largest cotton producing state in India.
The US Department of Agriculture (USDA) reported that 31 percent of the US cotton crop was in good to excellent condition due to the impact of Hurricane Idalia.
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“However, reports of heavy rainfall in China’s Xinjiang are expected to affect both the quality and quantity of Chinese cotton production,” media reports indicated.
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It may be noted here that Xinjiang region accounts for 90 percent of Chinese cotton crop and 20 percent of the world cotton crop.
