Business

India: Cotton arrivals in North start, price zooms by 25%

Cotton crop has started arriving in the markets of Punjab and Haryana, and growers can hope for a remunerative price this season. The price is between Rs 5,000 and Rs 5,400 per quintal against between Rs 4,000 and Rs 4,200 per quintal last season, traders have said. "The new cotton season has opened on a high note, with 20-25% appreciation in the price of new stock," North India Cotton Association president Mahesh Sharda said.

The cotton lint price hovers between Rs 4,650 and Rs 4,725 per maund (37.32 kg), against Rs 3,900 per maund last year. Cotton arrival is on in the markets of Sunam, Bathinda, and Abohar in Punjab, and Sirsa and Fatehabad in Haryana, but it's still low, at almost 1,200 bales a day, as the output from Punjab and Haryana is also likely to be 5% less this season. "The reasons are less acreage coverage in Haryana and the weather impact in Punjab at the time of maturity," said Sharda.

Last month, cotton sown over almost 60,000 hectares was affected because of heavy rain in Punjab's cotton belt of Muktsar. In the season 2013-14, the area under cotton in Punjab shot up to 5.05-lakh hectares, past the target of 5 lakh hectares.