Cotton prices reach up to Rs 4,500 per 40 kg

The cotton prices in the market have reached up to Rs 4500 40-kg. According to the market sources, due to continuous export of yarn and cotton, the prices are increasing. Big textile groups have taken back their hands from the procurement of cotton whereas only those textile groups are taking interest in purchasing who have to complete their export orders.
On the other hand, ginners are also not showing any interest in the sale of fine quality cotton and their purpose is just to mint heavier profits. The low production of cotton at national and international level is also becoming the root case for the rise in cotton prices.
There is no chance of decline in cotton prices in the near future. The production target of cotton for the current season is set as 12.1 million bales whereas till December 1, about 10.4 million bales have reached in the ginning factories. About 650,000 bales of cotton have been exported from the country till the start of December 2009. Textile mills need to import about 3.5 to 4 million bales of cotton before the start of next season.