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Cotton local & export demand to surge

06 Mar '07
3 min read

However, in the case of traditional varieties, farmers take 4-5 pickings resulting in a longer harvesting period and a consequent extended marketing season compared to Bt cotton.

Absence of winter rains (November/December) this year also adversely affected additional cotton pickings from the rainfed cotton growing states of Gujarat, Maharashtra and M.P. The quality of cotton arriving in most markets this year is reported to be better than in previous years. Refer to Table 2 for the latest state-wise cotton area and production estimates for MY 2006/07.

MY 2005/06 Production Marginally Lower:
On December 22, 2006, the Cotton Advisory Board revised the MY 2005/06 production estimate lower at 24.4 million Indian bales (19.05 million U.S. bales) based on final market arrival figures and cotton pressing figures compiled from the ginning and pressing units in the country. Post's MY 2005/06 production estimate has been revised marginally lower to reflect the official estimate.

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Prices Remain Steady Despite Heavy Arrivals:
Despite reports of record production and heavy market arrivals, domestic cotton prices remained relatively stable during November 2006 to January 2007 on strong international and domestic demand. With a slowdown in market arrivals, prices have started firming up since early February, gaining 5 to 10 percent over January-end prices.

United States Department of Agriculture Foreign Agricultural Service

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