If China doesn't spoil the party, cotton rates may go up 9%

PUNE: Cotton Corporation of India chairman BK Mishra expects price of the commodity to cross Rs 34,000 per candy by July, up by about 9% from current levels, amid depressed global rates. The only potential threat is China liquidating its stocks in the coming months, putting pressure on global prices.

Prices will rise on account of a drop in domestic crop, he said.

Domestic prices were at their peak at the end of December at Rs 34,000 per candy of the Sankar 6 variety, after the season had star Rs 32,100 per candy in October ted at 2015. Cotton prices are currently steady at Rs 33,200.

In the 2015-16 cotton season, CCI has bought 8 lakh cotton bales and halted procurement as domestic rates improved. The cotton trading body has so far sold 1lakh tonnes of cotton. There is speculation that China may offload some of its 11 million tonnes of stock. Some are sceptical about this.