The Indian Cotton Federation (ICF) has pegged production in the current season (2013-14) at 361 lakh bales (170 kg each) as against 375 lakh bales projected by the Cotton Advisory Board (CAB) and 378 lakh bales projected by Cotton Association of India (CAI).
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.
ďThough 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,Ē 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