Cotton prices in India have hit a 9-month high as the price of the commodity breaches the Rs 60,000-mark, per candy, on the back of low crop arrival and high demand. Cotton prices at the global level have risen to an 18-month high, making the biggest gains since September 2022, with the price rise in February 2024 seeing an uptick of 27 percent globally and 16 percent in India.
The ICE futures, a global exchange index, has witnessed 65-70 percent Open Interest with Funds and Speculators.
Cotton exports in India is estimated to be at a two-year high in February at 400K bales, with Gujarat contributing 42,000 bales daily, according to a report by the Gujcot association. Indian cotton has been competitive in global markets, having exported an estimated 2.5 million bales in 2023-24. The major purchasing countries are China, Vietnam , and Bangladesh.
For 2023-24, around 215 lakh bales arrived in the country with 75-80 Lakh bales with farmers while 32 lakh bales were with CCI. Some 18-20 lakh bales were accounted for by trade.