CCI has retained its 2016-17 forecast for cotton production at 340-350 lakh bales and has reduced the export forecast to 60 lakh bales
Indian cotton exports have shriveled up with domestic prices rising on tighter supplies and higher prices for the staple in the international markets. Cotton prices have gone up to Rs 40,000 per candy as compared with Rs 34,000 per candy in April, BK Mishra, CMD, Cotton Corporation of India (CCI) said. Cotton prices have risen by Rs 2,000 per candy in the last fortnight, he said. There is very little likelihood of more export, he said.
Within a month, price of lint (processed cotton) has touched Rs 42,000 per khandi (350 kg) as against Rs 33,000. Raw cotton is Rs 6,500 a quintal. Low output as compared with the previous year has pushed up prices, as a result of which those who had the funds purchased raw cotton from the markets and sat on the processed lint waiting for the price to rise. Finally, as a shortage was created, the rates began increasing to Rs 41,000-42,000 a khandi of lint. This made raw cotton dearer too but it won’t benefit the farmers, as most of them have sold their stocks long ago. Rates of raw cotton had recently touched Rs 6,500 a quintal.
The CCI has retained its 2016-17 forecast for cotton production at 340-350 lakh bales and has reduced the export forecast to 60 lakh bales from the 66 lakh bales forecast earlier. It all depends on the monsoon, he said. “Though we don’t foresee much shortfall and the Met department has predicted a good monsoon for the country, there has been damage to the crop in the previous season due to whitefly attacks and the pink bollworm, and this could impact crop size,” Mishra said, The acreage was around 118 lakh hectares in the season of 2015-16 and there could be a minor correction this season, he said. Around 55-60 lakh bales could be exported, he said.
The main buyers for Indian cotton include Bangladesh and Pakistan.The landed cost of Indian cotton for buyers in Pakistan and Bangladesh is at 75-76 cents per pound compared with around 73 cents for Brazilian cotton, he said.