Cotton prices are firming up due to higher export demand, particularly from Pakistan. Besides, the Cotton Advisory Board (CAB) has cut down earlier production estimate for 2015-16 to 352 lakh bales, which is also supporting the fibre’s price. In the last season, 380 lakh bales of cotton was produced.
Though the seed cotton arrivals in the markets across the country are still on, they are less by 20-25% as compared to the last season’s in the same period. Around 185 lakh bales have arrived so far, officials said.
Cotton Corporation of India’s (CCI) has procured just about 8 lakh bales as the prices are ruling at more than MSP levels with bonus/price incentives offered to farmers, said Indian Cotton Federation (ICF).
Traders are of the view that the actual production in the current season will be further down by 10-15 lakh bales.
With the opening stock of 52 lakh bales coupled with the imports of 11 lakh bales, it has been projected that the total cotton supply in the current season is around 415 lakh bales. After mills, SSI consumptions and exports, the total demand for the season is estimated to be around 380 lakh bales, ICF said.
According to ICF, in the northern region of Punjab. Haryana and Rajasthan, seed cotton arrivals are on and cotton lint prices are firming up. J 34 RG was ruling between Rs 3,500 and Rs 3,600 per maund spot.
In Gujarat, during the current fortnight, while seed cotton arrivals continued the prices also moved upwards with export enquiries. S6 prices were being quoted above Rs 34,100 per candy spot on quality lots. In Maharashtra, cotton lint prices were on steady to fi rm tendency and seed cotton arrivals continued. Maharashtra government also offered price incentives to cotton and soyabean farmers.
In Madhya Pradesh, this season seed cotton arrivals is more than last season by 20% due to cross border movement change in weather conditions as per farmers group. H4/Mech 1 was ruling at Rs 33,900 to Rs 34,500 per candy spot on quality.
In Andhra Pradesh, one of the largest cotton producing state, seed cotton arrivals were brisk and cotton lint prices ruled in the rage of Rs 34,400 to Rs 34,700 per candy spot.
During this fortnight, seed cotton arrivals in Karnataka continued and DCH 32 ruled at Rs 52,300 per candy spot on quality demand. In Tamil Nadu, seed cotton arrivals picked up with fair ruling prices above MSP. Volume is reported to be much less.
Many mills positioned to buy spot to avoid quality disputes from upcountry arrivals. Farmers society reported brisk sales. Mills demand is fairly above average volume, the federation said.