Cotton prices in India are expected to remain above support levels till December, except in Telengana, trade sources said. The private procurement presently on in Telengana is below the minimum support price. However, traders say that prices are low because crop has more moisture due to recent spell of rainfall and expect better quality and increased arrival post Diwali. Cotton arrivals started in Gujarat and Maharashtra 20 days ago. In Khandesh area of Maharashtra, where new season's Cotton has started arriving, prices of Cotton with permissible moisture levels are above MSP. "Presently, Cotton price of the fair and average quality (FAQ) is ruling above MSP. We are all prepared to enter into market if prices touch MSP or below, top Cotton Corporation of India (CCI) official said. The trade expects India's 2017-18 Cotton production to be about 375 lakh bales. ICAC has projected increase in global as well as India's Cotton mill use. Global Cotton mill use is expected to increase at an improved growth rate of 2.7% during 2017/18 reaching 25.2 million tons. In comparison, during 2016/17 world cotton mill use grew by 1.6%. "Mill use in China is projected to grow by 1.5% to 8.1 million tons.
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