Cotton prices have increased by Rs 1,000 per candy in the past one week on the back of short supply. Good demand from domestic mills coupled with expectations of fresh export demand have helped push up cotton prices. During the last one week cotton prices have moved up from Rs 34,500 to Rs 35,500 per candy. Arrival of the commodity also fell to 45,000 bales as against 55,000 bales in the past two weeks. As compared to last year’s corresponding period, current arrivals have been almost 44 per cent lower. In May 2015, daily arrivals stood at about 80,000 bales.

Demand from domestic mills is good and, as against it, supply is tight, which has mainly lifted cotton prices up in the last one week. Moreover, fresh export demands are also possible in the coming days. Prices may continue to move up. On the other side, quality of raw cotton or kapas has also declined as most of the good quality products have arrived in the market. Farmers are also not willing to sell raw cotton at the lower rate which has restricted the supply at this time. India has exported about 6.2 million bales of cotton so far.