AHMEDABAD: After having remained firm for quite some time, cotton prices have eased on concerns of new variant of coronavirus, Omicron.
The prices of cotton in local markets dropped by Rs 1,000-1,200 per candy (356kg) over the last two days as the new variant, currently circulating in South Africa, spooked the global cotton market, said traders.
The prices of benchmark cotton variety, Shankar-6, have come down to Rs 65,300-65,800 per candy from their high levels of Rs 66,500-66,800 over past two days. “New variant of coronavirus has spooked the market, which has pulled down cotton prices in local markets,” said Arun Dalal, a city-based cotton broker.
“Following price dip in international market, domestic futures prices also dipped. Consequently, spot prices too eased,” said a cotton trader from Rajkot.
According to traders, arrivals of new crop to local mandis is currently slow and domestic mills are making limited purchases given the high price of the natural fibre. About 35,000 to 40,000 bales (one bale weighs 170kg) are arriving daily in local mandis . This should have been higher at 55,000 to 60,000 bales, added traders.
“Presently, arrivals are slow as farmers are busy with marriage season and there is also a shortage of labourers to pluck cotton.The arrivals are expected to pickup after December 10,” said a city cotton trader.
