At the board meeting, ICF president J Thulasidharan said the crop has been delayed by four weeks and it has been projected to touch 361 lakh bales.
Though late in arrival, the quality of the commodity will be good. The arrivals are restricted at present but after Sankaranthi the same will pick up and prices might ease, he added.
As per board meeting estimates, Gujarat will be the top production centre with 125 lakh bales, followed by Maharashtra (70 lakh bales) and Andhra Pradesh (65 lakh bales). Punjab, Haryana and Rajasthan together will have a production of 55 lakh bales, while Madhya Pradesh and Karnataka will contribute 18 lakh bales each. Tamil Nadu will have a production of 5 lakh bales and Orissa 3 lakh bales, he said.
According to ICF estimates, the all-India daily kappas arrivals are about 2 lakh bales. Approximately 1.20 crore bales have arrived in the market and are getting sold consistently. North mills and a few south mills have started procuring even at a little higher rates as they feel that quality variation in cotton will start after a fortnight.
Kappas arrivals are good in Gujarat, Maharashtra and Madhya Pradesh as farmers are getting good prices for their produce. In Andhra Pradesh and Karnataka, farmers are reluctantly bringing kappas in the market as they are not happy with the prices.
This is due to high micronaire value in the cotton in areas surrounding Guntur and many other pockets of Andhra Pradesh. Cotton in Raichur too has high micronaire value compared to the previous years.
During this fortnight, the inflow of seed cotton progressed, crossing the daily average above 20,000 bales in Punjab, Rajasthan and Haryana.
Unit prices, also in upward trend, went around R4,400 per maund spot. Farmers expect spot prices to be at least around R5,000, so they can meet the cost of cultivation which will reduce their financial burden.
In Gujarat, the daily kappas arrivals is approximately 65,000 bales. Good quality S-6 is being procured at R40,700/spot per candy due to a sudden surge in buying by both domestic textile mills and exporters in the last four days.
Kappas prices are around R4,900 per quintal. Weather is conducive and plants health is fine and bursting is normal.
In Maharashtra, the kappas arrivals have suddenly improved in the last fortnight and approximately 50,000 bales are arriving daily. The prices for good quality bunny is quoted R39,900/spot per candy in the areas surrounding Wani in Vidharbha, while in Khandesh it is sold at R39,600/spot per candy.
During this fortnight, seed cotton arrivals in Madhya Pradesh were around 10,000 to 12,000 bales daily.
Ruling average prices are around R40,000 per candy spot for Mech-1 lots.
Mill buying has begun. Quality lots are on the lookout by mills. In Andhra Pradesh, the kappas arrivals are poor and prices per quintal are around R4,400. Cotton in Adilabad is sold at R40,500/spot per candy while in areas like Warangal it is sold at R41,000/spot per candy.
The kappas arrivals are good in north Karnataka in areas surrounding Bijapur, Hubli, Haveri, Chitradurga and farmers are getting
kappas prices of around R4,650 to R4,800 per quintal, while in Raichur kappas arrivals are a bit less at the moment as kappas prices are comparatively less.
Prices for good quality 30 mm bunny in Raichur and Hubli are R40,500/spot per candy while 31 mm is sold at R41,500/spot per candy.