Cotton arrivals gain pace, prices to be steady

Written by fe Bureau | Chennai | Updated: Oct 21 2014, 09:07am hrs
All-India kappas arrival is said to be about 40,000 bales as cotton arrivals are slowly picking up in Gujarat, north zone (Punjab, Haryana and Rajasthan), Warrangal in Andhra Pradesh and some small pockets of Madhya Pradesh, Maharashtra and Karnataka, Indian Cotton Federation (ICF) has said.

The India cotton crop is predicted to cross 400 lakh bales, weather permitting. Cotton prices are ruling lower and Cotton Corporation of India (CCI) has plans to start procurement from farmers where ever spot prices are below MSP levels. The Cotton Advisory Board (CAB) has revised the estimate for the 2013-14 season at 398 lakh bales and the 2014-15 cotton year at 400 lakh bales.

According to current estimates, total supply of cotton in the current season is pegged at 448 lakh bales, including opening stock of 40 lakh bales and imports of 10.80 lakh bales. Post consumption by mills, non-mill usage as well as export of 118 lakh bales, the closing stock is estimated to be around 32 lakh bales, the federation pointed out in a release on Monday.

In the northern region of Punjab, Haryana and Rajasthan, there has been a slow down in monsoon showers and arrivals are expected to gather momentum if everything goes well. Punjab J-34 r/g is quoted at R3,580/spot per maund while in Haryana and Rajasthan it is quoted at R3,560/spot per maund.

New crop arrivals in Gujarat have started picking up and there is a slight improvement in grade. About 16,000 bales is arriving in this region while 14,000 bales is new crop and the rest is old kappas stock. The price quoted for good quality old crop S-6 is R35,000/spot per candy while the new crop with high moisture content is quoted at R34,000/spot per candy. Khandesh cotton in Maharashtra has started arriving in small quantities. In some pockets of Vidharbha the standing crop is badly in need of rain. The price for good quality bunny of 29 mm is R35,500/spot per candy.

In Madhya Pradesh, the quality of bunny arriving is the best in terms of grade at the moment even though moisture content is high due to the rains. The price for good quality bunny of 30 mm is R35,000/spot per candy. In Andhra Pradesh, cotton has just started arriving in some pockets nearing Warrangal. Areas surrounding Adilabad are badly in need of rain while there has been a cyclone in the coastal part of Andhra Pradesh near Visakhapatanam. The price of old stock of bunny of 29 mm in Adilabad and Warrangal is R35,000/spot per candy. The old stock is almost exhausted. Price of good quality 30 mm bunny in Guntur is R36,000/spot per candy.

According to ICF, in Karnataka, there has been a good spell of rain in the last fortnight which has led to reduction of kappas arrivals as farmers find it difficult to pluck kappas due to slush in the fields. There are still some black spots in the current new crop arrivals of bunny in areas surrounding Haveri and Chitradurga. In areas surrounding Koppal, moisture is high and grade is poor due to discolouration of the kappas. The price for new crop 30 mm bunny is around R36,000/spot per candy. Dch-32 is quoted at R46,500/spot per candy.