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New season cotton arrives in markets

Oct '08
The cotton sowing in India for the season 2008-09 is almost over in all the states barring Jayadhar variety in Karnataka and sowing of winter crop in Tamil Nadu state, which is in progress.

As per the information received from State Agriculture Departments of the cotton growing states, the area under cotton cultivation is likely to be around 93 lakh hectares, which is about 2% lower than the previous year.

The up to date standing crop position is reported to be very good in all the three zones and the recent rains in Maharashtra, Gujarat and Madhya Pradesh are reported to be beneficial for the crop.

Cotton in northern zone of India has started arrival. The cotton arrivals in Punjab & Haryana states have picked up further and the daily arrivals are in the range of 10,000 to 12,000 bales.

The quality of cotton is reported to be very good and the mills from Northern zone have started buying cotton for their immediate consumption. It is expected that by second week of October the daily arrivals in Northern zone would cross 20,000 bales and the All India arrivals may be around 40,000 bales.

In the Central zone, the cotton arrivals have started in certain markets of Maharashtra, Madhya Pradesh and parts of Gujarat state. The daily arrivals in Central zone, which is now in the range of about 5000 to 6000 bales, may pick up only after 15th of October, 2008.

The current lint prices are higher by around 29 to 39 per cent with corresponding period of last year except ELS varieties. However, in ELS variety of DCH-32 there was no price increase as compared to previous year.

Due to week sentiments both at global level as well as at domestic level, the cotton prices are under pressure and the same have reduced by Rs.500/- to Rs.800/- per candy both for new arrivals as well as old crop cotton.

It is expected that the prices would further go down from the current level as mills would prefer to adopt the policy of hand to mouth purchases. A clear picture regarding the crop size at the all India level and the likely price trend would emerge only by end of October, 2008.

Cotton Corporation of India

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