Rupee depreciation motivates cotton buying in India

The arrivals are poor in Andhra Pradesh as farmers are unhappy with the prevailing prices and unfortunately due to the Telangana problem, government decisions are stagnant. CCI is refusing to buy the rain damaged cotton at prevailing kappas prices due to poor quality. Good quality Bunny cotton in Adilabad is sold at Rs.39,000/- spot per candy, while in Warangal good quality bunny is sold at 39,500/- Spot per candy and good quality Mcu-5 in Guntur is sold at Rs.40,000/- Spot per candy .There are still yellow stains prevailent in the present cotton  arrivals.

KARNATAKA:

The kappas arrivals are good in this region as many Mills are actively buying here as per their requirements as quality is good in all aspects. In Raichur region micronaire value of the cotton is high and range between 4.5 to 5.The price quoted for good quality 30mm bunny in Raichur and Hubli of micronaire value 4 is Rs.39,200/- spot per candy while 31mm Bunny is sold at Rs.40,500/-spot per candy.The prices of good quality Dch-32 is Rs.68,500/- Spot per candy.

TAMILNADU:

Mills buying trend continued on need based expecting further fall in cotton lint prices. Since the future demand is strong enough, weakening of prices may not happen. Bulk buyers started procuring, though quality variations are rampant. Seed cotton arrivals have started picking up and winter weather is conducive. Flowering began in southern tracks of Virudhanagar, Madurai etc.

Plants are in in lesser height and hence yield may be less in this belt as per farmers whom we met. Sucking pest attack and untimely rains affected the quantity and quality in other belts as per field supervisors. Texfair 2013 with Farm to Fiber expo organized by SIMA during 13-16 Dec.13 was well participated by business visitors and Farmers groups. SIMA -CDRA arranged a seminar on 14.12.2013 by cotton experts.

ICF secretary, Sri.A .Ramani and Vice President Sri K.N.Viswanathan also made presentations. Scientist from TNAU/CICR/CDRA along ICF-CE addressed Farmers group also on Cotton precision farming. ICF at its stall made video display of use of Mechanical Implements from land preparations to cotton picking with clean cotton.

INTERNATIONAL

World cotton prices started firmed up and upward trend prevailed with newyork prices moving @ 83 cents per lb and A index @ 88.40 on 12.12.2013.India plans to have an ambitious textile export target of $50 billion in 2013/14 against $34 billion in 2012/13. China and Bangladesh competition are being monitored with flexi strategy. In Pakistan cotton production may be lower in 2013-14 due to floods, water shortages and lower prices as per reports.

Last season production was reported as 12.336 million bales as per CCAC. In China 173000 tonnes of cotton was imported in Nov.2013 which is more than OCT.13.Prices were steady. But China may import from India as cotton prices are favourable to them. Cotton production is 6.3 million tones in China in 2012-13 and projected area of cotton 66 million mu for 2013/14.Chinas cotton policy on stock/imports etc will rule the Global cotton prices as per reports.

Indian Cotton Federation