Coronavirus outbreak: Groundnut, cotton exports from Gujarat to China face uncertainty

By: |
Published: February 6, 2020 3:18 AM

Prices of groundnut seeds have fallen by Rs 1,000 per tonne to Rs 67,000.

Coronavirus outbreak, Groundnut, cotton exports, Gujarat, China, Chinese markets, Chinese Lunar Year holidaysIn case of cotton, against last season’s 90 lakh bales (170 kg each bale), more than 100 lakh bales are expected this year.

The outbreak of coronavirus may hamper exports of groundnut seeds and cotton from Gujarat to China and some of the traders who have already exported these commodities are eagerly awaiting for payments as markets in the neighbouring country are closed.

Since mid January till February 8, Chinese markets are almost closed due to Chinese Lunar Year holidays. But due to coronavirus scare the holidays may be extended till the situation comes under control, says an exporter who is awaiting for payments for his cotton consignments exported to China.
Due to uncertainty over the new export orders, prices of cotton in local markets have gone down from Rs 41,000 to Rs 39,000 per candy (355.5 kg). Even prices of yarn have gone down from Rs 208 to Rs 204 per kg.

“On account of news related to anti-coronavirus vaccination, some positivity is being spread. Recently some traders got queries from Chinese importers,” says Saurin Parikh, president of Gujarat Spinners’ Association.

Prices of groundnut seeds have fallen by Rs 1,000 per tonne to Rs 67,000. However, the prices have started consolidating due to fresh queries from Chinese traders. Recently, some of the traders received payments from Chinese importers which has boosted confidence of local traders, but many are still awaiting for Chinese markets to open.

“Due to the marriage season, income from groundnuts has slowed down, but in 10-15 days again, farmers would sell large quantity of groundnuts in local APMCs which would create pressure on the prices of groundnut seed if Chinese import will not start again,” says a trader dealing in groundnut seeds.

This year, bumper crops of groundnut and cotton are being estimated in the state and if exports would does not pick up, there would be negative impact on the prices of these commodities.

As against last year’s yield of 18 lakh metric tonne in Gujarat, more than 32 lakh MT of groundnut yield is being estimated this season. In case of cotton, against last season’s 90 lakh bales (170 kg each bale), more than 100 lakh bales are expected this year.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Maharashtra sugar mills pay 98% fair and remunerative price dues to farmers
2Gold imports plunge, but it’s a good news for India
3COVID-19 pandemic to impact non-ferrous metals demand in India: Report