Cotton price rally, traders blame MNCs

Cargill, Glencore say they didn't manipulate market

Cotton prices are up 7.5 per cent in January on lower arrivals despite estimates of a bumper output this year.

The benchmark, Shankar 6 variety, was traded at Rs 11,979 a quintal on January 24, a rise of Rs 850 from early this month. Other varieties of fibre have moved up similarly.

The agriculture ministry in its first advance estimates projected India’s cotton output at 32.12 million bales (170 kg each) in 2016-17, up from 30.15 million bales in 2015-16.

Ginners are facing a squeeze in their margins because they cannot pass on the increase in cost to consumers. Multinational companies active in