The prices of long staple Bt cotton or Sankar-6, in Gujarat are seen nose-diving 20 per cent in the next 10-15 days due to low export demand and increasing arrivals, traders said on Tuesday.
Gujarat is the top cotton producing state in the country, contributing an estimated 11.5 million bales to the country’s total output of 31.5 million bales in 2007-08.
“Sankar-6 cotton prices, which ruled in the range of Rs 27,500-28,500 a candy in the current marketing season, are likely to fall to Rs 22,000 by mid-October,” said Dilip Patel, president, All Gujarat Cotton Ginners’ Association.
At present, Sankar-6 (29mm) quality cotton was quoted at Rs 27,000 in Gujarat spot markets, unchanged from Monday’s close. Current prices in the state are at an all-time highs, with average cotton prices staying in the range of Rs 21,000-25,000.
Patel said Bt cotton prices will be pressurised going forward on rising arrivals and healthy output estimates this year, despite a fall in the acreage in Gujarat. According to Gujarat government estimates, the state’s cotton acreage fell to 2.45 million hectares this kharif season against 2.52 million hectares a year ago.
