Kapas prices rose by three per cent to Rs 676 per 20 kg in the futures market today following aggressive buying by traders, driven by firm spot markets cue.
Market analysts said heavy buying by traders on fears of low inventories, caused the sharp rise in prices.
Heavy rains in kapas growing regions also boosted the trading sentiments, they added.
At the National Commodity and Derivatives Exchange, kapas for delivery in February gained Rs 19.70, or 3%, to Rs 676, with an open interest of 70 lots.
Similarly, the prices for delivery in April hardened by Rs 7.10, or 1.06%, to Rs 680, showing an open interest of 3,025 lots.