The Hindu Business Line : September arrivals may see cotton lint prices easing

Coimbatore, Aug. 28 Cotton lint prices displayed a softening trend during the first fortnight of August. The rates, though, were higher compared to the corresponding period of last year, for all varieties except the extra long staple lots. South India Cotton Association sources perceive that the scenario would improve in the coming weeks.

The crop situation, meanwhile, is being reassessed. Mills have reportedly gone slow in procuring cotton as they foresee a better crop prospect. Though the price trend is expected to be known only after a correct reassessment of the cotton crop, SICA sources feel that the prices would sober with the new crop arrival.

In Punjab, Haryana and Rajasthan, lint prices maintained a steady to easy trend up to mid August. Bengal Deshi variety was ruling at Rs 2,620-2,700 a maund spot. The J-34 saw ginned ranged in the Rs 2,750-2,810/maund range band. Weather reports indicate conducive and positive crop prospects. The new crop arrivals are expected to be on time, in September.

More acreage

Farmers are said to have gone for additional acreage in some districts of Gujarat as the rains advanced. Yet the price line for the 2007-08 stocks remained higher compared to the last season. Shankar 6 moved in the Rs 27,200-Rs 28,000/candy price range. The new crop, however, was quoting lower at around Rs 24,500/candy spot.

Scattered rains were reported in certain cotton tracts of Madhya Pradesh, Maharashtra and Andhra Pradesh and the crop prospects, sources say, would be good.

Switching crops

Due to untimely rain in Karnataka, cotton farmers are said to have switched over to other crops. Lint prices continued to remain high in Tamil Nadu.

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