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Indian cotton arrivals dipping, says ICA
Jun '13
The arrivals are dwindling in most of the States and season seems to be coming to a close. Approximately 3 Crore 19 lakh bales have arrived in the market as per trade sources. CCI seems to be the best source for good cotton especially in the Andhra Pradesh region at the moment at around Rs.41,000/-Spot per candy.

Most of the North Mills are procuring from Gujarat and Madhya Pradesh due to their proximity from these centres to save lorry freights while the South Mills are sourcing from CCI in Andhra Pradesh.

The Indian rupee has fallen to nearly Rs.59/- to a dollar thereby making import of cotton unfeasable and export of yarn an attractive proposition to the Textile Mills. Monsoon which is main deciding factor for Farming operations have begun on time and now spreads across the arable areas.

Prospects of a normal monsoon are bright. Cotton seed distribution is in progress. Mostly Bt seeds are in demand by Farmers. Farmers group is also worried on the increased cost of inputs like seeds, fertilizers, pesticides, labour and the funds crunch. Demand for cotton lint is persisting. Monsoon will decide the Farmers mood to decide the area.


Daily kappas (seed cotton) arrivals have dropped to approximately 1500 bales. Cotton sowing is almost complete in this region. Prices for good quality J-34 R/g from Punjab is Rs.4170/- per maund spot, while in Haryana and Rajasthan good quality J-34 R/g is priced at Rs.4070/- per maund spot. Bengal Desi S/g is quoted at Rs.3850/- per maund spot. Area sown by cotton is yet to be assessed. Canal water is boon for irrigation in this belt. Monsoon predictions are favourable.


Daily cotton arrivals are approximately 8000 bales and arrival of rains in many parts of Gujarat are helpful for the Farmers to prepare to sow cotton for the new season. Prices for good quality S-6 is Rs.39,800/-Spot per candy while good quality V-797 r/g was priced at Rs.27,500/-Spot per candy. Saurashtra area experienced good rain.

Cotton seed sales are brisk. S.6 spot rates moved up from Rs.39,000 /cdy spot to Rs.40,500 /cdy spot from middle of this fortnight, due to various factors like firm ICE Futures, Good demand from Southern Mills due to improved yarn Market conditions, both in Local and Export (Due to devaluation of Rupee) and less arrival of kappas, from the beginning of this fortnight.

Quality is the constraint at present in S.6, due to deterioration in both Staple length and Micronaire. V.797 prices were ruling at around Rs.27,500 to Rs.28,000/cdy spot. In Gujarat, arrival of monsoon in proper time, did not have any impact on prices till now, which usually, witness a bearish trend, due to factors mentioned above besides, lower crop estimated for the current season.

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