The Hindu Business Line : Rains brighten cotton outlook

Coimbatore, Aug. 18 The cotton scenario, which looked bleak last fortnight, seems to have changed dramatically since the beginning of this month following the copious monsoon.

“There is a bounce-back. We expect the current year’s production to be almost equal to the 2006-07 crop at around 310 to 315 lakh bales,” Mr K.N. Viswanathan, Honorary Secretary, South India Cotton Association, told Business Line.

Lint prices, which were showing an upward trend, seem to have sobered. Shankar 6, which was quoting at Rs 28,500/candy towards end of July, slipped to Rs 27,500/candy and the price of the new crop fell by 10 to 12 per cent, industry sources said.

“The uncontrolled price rise has stopped for now. Though mill buying is slow and production estimates encouraging, we do not foresee a crash in cotton prices,” Mr Viswanathan said.

Rate tab

According to industry players, the current rates of some of the popular varieties were higher than international prices. “Imported cotton, which used to quote 80 cents has slipped to 75 cents today,” the source said. Exports, too, do not seem to happen in a big way because of the restrictions placed by the Government.

Meanwhile, lint prices continued to rule easy to steady during the last July fortnight in Punjab, Haryana and Rajasthan. Bengal Deshi variety was quoted at Rs 2,650 to Rs 2,790 per maund and J 34 saw ginned at Rs 2,800/maund.

Resowing

The prices responded marginally to the withdrawal of import duty on cotton in Gujarat, but regained firm tendency. According to SICA sources, resowing had taken place in many tracks in Gujarat and the acreage reportedly was less due to uneven distribution of the monsoon.

In Tamil Nadu, there seems to be no respite in lint prices, even after the announcement of import duty/duty drawback relief.

The seed cotton arrivals continued in the rice fallow districts of Konganapuram, Mallasamudram, Tiruchengode, Boothappady and Vizhippuram markets.

More Stories on : Cotton | Climate & Weather

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Problems dog basmati rice export industry

Area under kharif cereals, pulses down

Organic aquaculture project gets under way

Pakistan cuts Coonoor tea purchases

Aavin to expand procurement areas

Nabard fund to help farming community adopt tech

Rains brighten cotton outlook

Pepper futures market witnesses high volatility

Brazil claims its black pepper to be of good quality

Cardamom estates hit by strike

Indian mangoes now find their way to Australia