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Indian cotton arrivals drop in first fortnight of Jan
25
Jan '14
The all India Cotton arrivals dropped to approximately 1.6 lakh bales as farmers were focused on harvesting of rice and also on advice from Agriculture departments in some states like Karnataka recommending them to hold cotton kappas for a month and sell their chilly harvest at the moment.

This has had some influence on them to withhold their stocks of kappas with a hope to get better prices for their produce.

As per trade sources approximately 1.6 crore bales have arrived in the Indian market till 15th January. Market is expecting that an increased inflow could stabilise cotton lint prices. On a look at the state wise cotton arrivals the inflow was regular and prices of seed cotton was above MSP and reasonable.

North Zone [Punjab /Haryana/Rajasthan]

Arrivals are slowly decreasing in this region. Good quality Punjab J-34 r/g is quoted at Rs.4,630 per maund while in Haryana J-34 r/g is quoted at Rs.4,540 per maund.

Rajasthan J-34 r/g is quoted at Rs.4,560 per maund. Sirsa, Abhohar and Hanumangarh reported reasonable quantity of arrivals compared to last season. Price factor also favourd arrivals of kappas at Mandies.

Nearby Mills are planning bulk buying. South Mills find it costlier due to prohibitive transportation costs. Weather is conducive for harvesting. Second picking is also on in some areas, while sprouting is also seen in certain areas.

Gujarat:

In the past fortnight, cotton scenario in Gujarat was, mostly influenced by the tempo of arrivals on day to day basis, with prices of S-6 moving up, gradually from the band of Rs.40,500 to Rs.40,700 /cdy spot to Rs.43,000 / cdy spot as reported by various ginners from Rajkot Area. The main reason for the spurt in rates is reduced arrivals, due to farmers holding capacity, coupled with exporter’s enquiry.

As per the ginners, based on kappas rate of Rs.1,100 / Md (Rs.5,500 per Qtl), the cost of lint works out to Rs.45,000/cdy spot, against market rate of Rs.43,000 /cdy spot.

Different opinions are, expressed by various quarters of the industry, predicting prices will remain firm only, even after the festival holidays, and also prices may fall to a certain extent, when the arrival pressure builds up, which is to be watched. Daily kappas arrivals are between 50,000 to 65,000 bales. Approximately 60 lakh bales have been pressed in Gujarat till now.

Good quality V797 is quoted at Rs. 31,200/- spot per candy. Demand for export to Pakistan & Bangladesh is popular as per reports.


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