After reaching record levels in May, cotton prices began to fall as new harvests arrived in the main producing states.

Prices are down by more than 35% compared to the peak observed in May. According to commercial sources, daily market arrivals are between 25,000 and 30,000 bullets (170 kg) and prices are expected to fall before the peak of arrivals in mid-October. The modal price (the rate at which most trade takes place) exceeds Rs. 8,000 per quintal at Agricultural Commodity Marketing Committee (APMC) yards in states such as Haryana, Rajasthan, Punjab, and Gujarat.

Nevertheless, in markets such as Halvad in Gujarat, the modal price has slipped to around Rs. 7,300 levels. According to Anand Popat, a cotton, yarn and cotton waste trader based in Rajkot, “While prices are difficult to predict, it is expected that the market will fall more likely as arrivals peak in mid-October.” For him, the mills were not in the mood to buy cotton, while some mills closed due to a shortage of raw materials.