Losses hit traders, mills as cotton prices dip

Written by fe Bureau | Chennai | Updated: Oct 8 2014, 09:10am hrs
The prices of yarn and cotton are declining, leading to heavy losses to both traders and mills as the current season is expected to witness much higher yield of 425 lakh bales as against the earlier projected yield of 390 lakh bales.

New cotton has started arriving in small quantities

in Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh and Karnataka, the Indian Cotton Federation (ICF) said.

The Cotton Advisory Boards consultative committee will meet in Mumbai on October 13 to discuss the latest developments in cotton sowing/crop for the 2014-15 season. At the recent federation members meeting, it was forecasted that cotton crop yield could be 425 lakh bales for the 2014-15 season.

The federation also highlighted the global cotton scenario and business prospects of ginners, spinners, brokers, commodity futures and the views of Monsanto and LMW. The ICF discussed future plans like branding of Indian cotton, formation of national cotton board.

Meanwhile, the northern states of Punjab, Haryana and Rajasthan witnessed arrivals with black spots due to heavy rains. New crop J-34 r/g is priced at R3,515 per maund spot while old stock lots are priced at R3,675/spot per maund. The old crop J-34 r/g in Rajasthan is priced at R3,600 per spot per maund.

In Gujarat, there has been heavy rainfall in the last fortnight and new crop S-6 has started arriving in small quantities in areas surrounding Dhanduka. The quality of the new crop is poor and full of yellow and black spots. It is selling at R34,000 per spot per candy. The old crop S-6 stock lots are priced at R36,000 per spot per candy. In Maharashtra, heavy rains have lashed many areas in the last fortnight. Low micronaire Mech-1 cotton of 3.2 and 29 mm in Maharashtra is quoted at R35,500 per spot per candy.

According to the ICF, rains have been favourable to the standing crop in Madhya Pradesh and good quality 29 mm bunny cotton is priced at R36,000 per spot per candy. Moisture content is high due to heavy rains in the last fortnight. In the northern parts of Andhra Pradesh, in areas surrounding Adilabad, farmers are eagerly awaiting good rainfall for their standing crop while there has been good rainfall in the last fortnight in areas surrounding Warrangal, Khamam and Guntur.

Old crop 29 mm bunny in Adilabad and Warangal is priced at R37,000 per spot per candy and Guntur good quality 30 mm Mcu-5 cotton is quoted at R40,000 per spot per candy. New cotton crop is arriving in certain pockets near Adoni but the quality is poor due to heavy rainfall in the last fortnight.