The new cotton crop has started reaching parts of North and South India and its prices have crossed the Minimum Support Price (MSP). “This year, arrivals are slightly ahead of schedule, with about 3,000 bales arriving daily. Demand is slowly recovering and the market expects good returns after September 15”, Bhatinda-based Indian Cotton Association Ltd.
“The crop is better than last year and the quality is good, although there have been pink boll attacks in Punjab”, adding that prices of raw cotton (kapas or unprocessed cotton) are hovering above ₹ 7,000 per quintal in North India.
Rajasthan crop
The MSP was set at ₹ 6,620 for medium staple cotton and ₹ 7,020 for long staple cotton. Rajasthan’s crop needs rain now, while a clearer picture will emerge after September 15. Cotton growing areas in parts of Telangana, Karnataka and Maharashtra have received rain in the last two days after a dry August.
“The market strengthened after last week’s ICE trend and delayed rains. Prices increased from ₹60,000 to ₹62,500 per candy (356 kg). Only factories with less inventory are buying. Availability is not a problem at all and mills cannot pay higher prices due to weakened demand and movement of yarn in domestic and export markets, said Ramanuj Das Boob, vice president of the National Cotton Brokers Association and purchasing agent for multinationals in Raichur.
In parts of Telangana, Andhra and Karnataka, the arrival of raw cotton has started in Kurnool, Nandyal, Yemmiganur, Adoni and Raichur, where farmers who grew fiber crops have started marketing their produce, Das Boob said. South market prices are in the range of ₹7,400-7,800 a quintal, down from ₹10,000 a year ago. “Last year, the harvest was smaller and prices rose to record highs, so arrivals were slower because farmers couldn’t wait for higher prices”.
Cotton cultivation area has decreased this year due to irregular monsoon. According to the latest data from the Ministry of Agriculture, the area was 122.99 thousand hectares until September 1, a year ago it was 125.63 thousand hectares.
