Monsoon delay affects Indian cotton farmer sentiments
August 28, 2015 - India
According to a report
of the Indian Cotton
Federation (ICF), the delay in monsoons has affected the sentiments of cotton growing farmers in many parts of India.
“Cotton growing farmers in areas surrounding Guntur in Andhra Pradesh, a few areas in Marathwada, some areas near Raichur in Karnataka and some pockets of Saurashtra in Gujarat have suffered badly due to delay in monsoon and may opt for alternative cash crops,” the report said.
“This in a way is good, considering the huge carry forward cotton stock our trade
may carry into the upcoming cotton season as cotton export too has been cut short to approximately 55 lakh bales in the current season as per trade reports,” it added.
The ICF Board met on August 8 to discuss the current cotton scenario and expects that the Indian cotton crop could be around 388 lakh bales for the 2014-15 season.
They also discussed moisture stress occurring in most of the cotton belts due to delayed second spell of Southwest monsoon as time and again farmers have voiced concerns over moisture stress.
ICF, quoting reports also informed that the Cotton Corporation of India (CCI) is holding a stock of 43.7 lakh bales as on August 8.
In the first fortnight of August 2015, cotton lint prices ruled steady to firm tendency, but mills are reluctant to replenish cotton stock as yarn movement is consistently slow or nil.
Due to yarn stock piling, mills have opted to cut production to overcome demand stress, while SIMA has requested the Prime Minister to augment policy initiatives on textiles which is a long pending need.
In Punjab, Haryana and Rajasthan, rains have been delayed but are sufficient for the standing crop and new crop J-34 r/g may start arriving by October.
The price quoted for Punjab J-34 r/g was Rs.3700 per maund spot while in Haryana J-34 r/g was priced at Rs.3650 per maund spot and in Rajasthan J-34 r/g was spotted at Rs.3660 per maund spot.
“The crop may be approximately between 50 to 55 lakhs as per sowing reports from the cotton trading community,” the report stated.
The delay in monsoon has led to Gujarat farmers shifting to other cash crops like groundnuts and tur
dal in many cotton growing pockets of Gujarat.
As per report from the cotton trading community, the cotton crop could drop to a little above 1 crore bales in Gujarat considering the sowing pattern of farmers till date and good quality S-6 stock cotton was assessed at Rs.34,000 spot per candy.
Cotton sowing has been good in Vidharba and Kandesh in Maharashtra despite delay in monsoon while Marathwada has been affected badly. Good quality 29mm Bt Bunny cotton was quoted at Rs.33,700 spot per candy.
In Madhya Pradesh, rains have been excessive in some parts of the state leading to resowing of cotton in some areas, while there is not much of unsold stock with cotton traders.
CCI is the only source for cotton in this state and has been selling 28 mm cotton at around Rs.32,000 spot per candy in its auctions.
Even though there was a delay in monsoon, cotton sowing in Andhra Pradesh has increased by around 25 per cent in Telangana region while in Seemandhra picture is not yet clear due to recent rainfalls in areas surrounding Guntur.
Good quality 30 mm Bunny available with CCI was sold at around Rs. 33,000 spot per candy at various centres like Guntur, Warangal and Adilabad.
In Karnataka, the sowing is much less compared to last year in this region due to lack of timely rainfall in areas surrounding Raichur, Bellary and Bailhongal.
Raichur area which produced 11 lakh bales last season is expecting only 6 lakh bales this season as per sowing reports till now.
As per trade reports, if in the near future rainfall happen in Raichur area, farmers may shift to channa or other alternative cash crops.
As per current cotton sowing reports in Karnataka, upcoming cotton crop is estimated to drop to approximately 20 lakhs.
In Haveri and Dharwad district, new crop cotton is arriving in small quantities and moisture content is reported to be above 9 per cent.
The price for new crop Bunny in Hubli is Rs.35,000 spot per candy while new crop 35 mm Dch-32 in Ranebennur is Rs.46,700 spot per candy.
Cotton lint arrivals are continuing and demand for seed cotton is on a slow trend in Tamil Nadu. Prices were lower due to lack of demand.
Delay in rain has resulted in an adverse set back in cotton sowing since the major crop is rain dependant. Mills offtake is also slow due to accumulation of yarn and finished goods stock.