The Hindu Business Line : Cotton arrivals put at 73 lakh bales

TOTAL arrivals of raw cotton (kapas) into various major terminal markets across the country have so far touched 73 lakh bales as against total estimated crop of 200 lakh bales, according to trade sources.

Total cumulative figures of 73 lakh bales include Gujarat (20 lakh bales), Maharashtra (15 lakh bales), North (Punjab, Haryana, and Rajasthan - 19 lakh bales), Andhra Pradesh (10 lakh bales), Karnataka (3 lakh bales), Madhya Pradesh (5 lakh bales) and Tamil Nadu (1 lakh bales). "Over 35 per cent of the total crop has arrived. Prices have gone down by about 25 per cent in past three months. Overall, domestic and global markets sentiment is sluggish," Mr Mitesh Shah of Kanam Cottons told Business Line.

Traders are expecting new crop to be 200 lakh bales for the 2004-05 season. However, the Cotton Advisory Board (CAB), in its meeting held on November 22, placed its estimate at 213 lakh bales (of 170 kg) for the new season 2004-05, up by nearly 12 per cent over the previous season's figure of 177 lakh bales.

"I feel the market is still in a bearish phase. But the only worry is quality. Reports from upcountry indicate that arrivals of higher-grade cotton in Gujarat are a matter of one month only," Mr Shah said.

In Maharashtra and Andhra Pradesh, quality is not up to the mark, even while the sowing was all for longer staple cotton, the ginning is a big problem there.