Cotton arrivals tumble 10.4% as Gujarat supplies take a hit
Supplies from the new crop dropped to 6.18 million bales, compared to 6.90 million bales last year, showed the latest data by the Cotton Corporation Of India (CCI). One bale equals 170 kilograms of cotton.
Arrivals of the crop in Gujarat dropped to 1.41 million bales until December 16, compared to 2.35 million bales in the same period last year.
Arrivals in Maharashtra, the second-biggest producer, rose 6% to 1.13 million bales while in Andhra Pradesh it jumped 59% to 1.59 million bales.
"It seems farmers have held back some stocks in Gujarat expecting better returns in near future. However, since prices have crashed below the MSPs (minimum support prices) in Andhra Pradesh, farmers are selling in a big way to the procurement agency of the government, which is buying the crop at MSP to prevent distress sales," said s senior textile industry executive.
Moreover, parts of Gujarat and Maharashtra had witnessed below-normal monsoon till mid-August, which delayed sowing and threatened yield prospects. Consequently, cotton output in India— the world's second-biggest supplier— is projected to decline 5.4% in 2012-13 to 33.4 million bales, according to CAB. The agriculture ministry recently forecast a crop size of 33.4 million bales for 2012-13.
Sources said CAB may have to trim its forecast if arrivals don't improve in the coming
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