Traders fear that floods and rise in demand of spot 28mm cotton could make it dearer by at least Rs500-1000 per candy (1 candy=356 kg) in the next few weeks.
Local traders have expressed concerns that the heavy rains in Maharashtra, Andhra Pradesh and Orissa and subsequent damage to the crop is already having an adverse effect on the prices.
In Orissa, re-sowing is going on since the crop sown in June has been damaged by excessive rain, while loss in Andhra Pradesh will be available only after a few days.
Constant rain and water logging will also delay the new cotton crop which was expected to be ready by October 15. What may also fuel the prices further is the fact that 4.5 million bales have been exported to China and Bangladesh.
Akola is one of the biggest markets of 28mm cotton in India and the prices have gone up by Rs200 per candy just in a day on Thursday.
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