Kapas or raw cotton prices ruled stable on Friday as demand from ginners was limited. Around 60,000-62,000 bales of cotton arrived in Gujarat state and 2 lakh bales of cotton across the country.
Traders and ginners said that arrivals are restricted since farmers are holding back their produce.
Gujarat Sankar-6 cotton traded at Rs. 42,900-43,000 for a candy of 356 kg. Kapas was quoted Rs. 1,050-1,085 for a maund of 20 kg and gin delivery kapas traded at Rs. 1,085-1,100 a maund in Rajkot.
On the National Commodity and Derivatives Exchange, kapas April contracts decreased by Rs. 11.50 to Rs. 983 a maund, with an open interest of 18,478 lots.
A Rajkot-based broker said that buying by domestic was hand-to-mouth. Export demand is limited at current price level. Due to restricted arrivals, prices may not drop in the coming days.
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