Cotton prices are likely to rise marginally on rising consumption in both the domestic and overseas markets, and it may remain strong for 2019 after rising substantially in 2018.
The prices are expected to average at Rs 125-127 per kg for cotton season (CS) 2018-19. The current weakness is also seasonal in nature. Further, prices are also expected to be supported by weakened rupee.
Prices would also be affected by the ongoing trade talks between the US and China.
Early in February 2019, the Cotton Advisory Board (CAB) revised its Cotton output estimate to 330 lakh bales (1 bale=170 kgs) from the previous estimate of 335 lakh bales for CS 2019, beginning October 1, 2018, for the third time.
This downward revision in production was largely attributed to the water shortage faced by cotton crop in southern states, including Telangana, Andhra Pradesh and Karnataka, and pink bollworm attack.
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