The cotton prices broke all previous records and crossed the Rs 2800 per quintal mark.
The prices of Narma variety of cotton have been ranging between Rs 2,760 and Rs 2,825 per quintal. As the demand for cotton from Mumbai and South-based textile mills and traders increases, the prices may go up further.
According to a report for the first time in the past eight years, Narma and Desi variety opened at high rates in the beginning of the season. The Narma variety opened at Rs 2,500 per quintal and the Desi variety at Rs 1900 per quintal. Last year, the opening price of Narma and the desi variety was Rs 2,000 per quintal. During this season, traders also expected a significant production of cotton than last year. The prices kept fluctuating between Rs 2,400 and 2,500 per quintal through-out the major part of season and in the past 15 days, touched the highest ever of Rs 2,825 on Jan 19 2004.
Traders revealed that the main reason
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| behind this unprecedented hike in the prices of the Narma variety was that some international buyers were purchasing large quantities of processed and raw cotton from Indian markets and exporting these to other cotton-producing countries where the yield had been significantly low this season.
Kapilash Chand Garg, a former president of the Northern India cotton Association (NICA), said apart from presence of international buyers, cotton being produced in Punjab, Haryana and Rajasthan had started gaining acceptability in international markets due to a significant improvement in its quality. He added that if the authorities concerned allowed the cultivation of BT cotton, the crop produced in this region could fetch better prices.
Report revealed that so far 21 lakh bales of cotton had arrived in the north India, comprising Punjab, Haryana and Sriganganagar circles of Rajasthan. Total production of cotton in this region was expected to be around more than 25 lakh bales against the production of 18 lakh bales last year. 
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