Contrary to the earlier expectations of fall in cotton productivity due to rains in September, the crop is likely to benefit immensely from rain and the cotton crop for kharif season 2013-14 may cross the initial estimate of 37 million vales. It may touch 40 million mark if the weather remains favourable.
The arrivals of cotton have been effected in most parts including Gujarat, Maharashtra and Southern states but the yield of cotton is going to be higher due to rain last month.
The observers say that the cotton prices may soften once the arrival pick up in the month of November.
Talking to Business Standard, the Vice President of Indian Cotton Federation (formerly South India Cotton Association) K N Vishwanathan said that the higher yield of cotton may fetch a crop higher than the projected 37 million bales where as last year the total cotton produced in India was 34.7 million bales.
“The cotton prices are hovering between Rs 47,000 per candy to Rs 48,000 per candy as the current stock with the mills is low and they are buying for their immediate needs. The price will come down in November when the arrivals pick up”, he said.
Dilip Bhai Patel of All Gujarat GinnersΆ Association said that the quality of cotton this year is going to be fabulous due to good rains and cotton this year they perceive would be very remunerative.
“The prices last year ranged between Rs 33,000 per candy to Rs 40,000 per candy. This year, the prices are likely to touch Rs 40,000 once the crop arrives in all states in large volumes. Since export market is not very lucrative due to a subdued demand from China, there would be price parity between international and domestic market”, said Patel.
The state of Gujarat is estimated to produce 13.5 million bales, Maharshtra 8.5 million bales, Andhra Pradesh 7 million bales, Karnataka 1.5 million bales, Madhya Pradesh 1.8 million bales, northern stattes 5.5 million bales, Tamil Nadu and Orissa 8 million bales and others 1.3 million bales if all goes well with the crop told a veteran cotton trader.
The minimum Support price of cotton was revised by Rs 100 for kharif 2013-14 and stands at Rs 3,700 per quintal for medium staple and Rs 4,000 per quintal for long staple cotton.
The Cotton Advisory Board will have its first meeting of this season on October 10 to dwell upon the issues pertaining to cotton, sources the CAB said. He added that it is premature to give any comment on cotton price or productivity trend before all the stakeholders meet and discuss the various aspects of crop for the season.
The Cotton Corporation of India officials were not available for the comments but sources in CCI informed that Government of India is yet to allocate funds for the cotton procurement and corporation may decide its procurement plans only after the guidelines are laid by the Government.
There are pockets in Maharastra, Gujarat and Rajasthan which may be effected by the excess rains, but loss , according to sources in industy, may be covered up by the yields in the other parts of the country.
