SICA cotton market report

18 Oct '07

4 min read

The cotton lint prices displayed a softening trend as the seed cotton arrivals in Northern belt has started picking up fast.

The arrivals in central India states like Gujarat, Maharashtra, Madhya Pradesh are also picking up. Recent rains have not affected the standing crops in any significant way but on the contrary the crops in some areas appear to have been benefited.

Karnataka cotton crop is reported to be in good shape as the BT adoption helped the crop to be pest free and rains have helped the soil moisture. Here the arrival will start in full swing by end of October.

Reports from all cotton growing tracts indicate a smooth and steady progress of crop on predicted lines and indicate crops to an extent of 315 lakh bales.

Mills are finding it difficult to assess the correct cotton scenario as the mixing of different quality cotton is rampant in the domestic lots. The firming of the Rupee vis-à-vis the US Dollar is bringing the Industry under more pressure.

SIMA had organized a second CEO conference at Coimbatore with theme "Recipe for Enhancing competitiveness of the Textile Industry".

This meeting had technical sessions on related subjects and well participated by Industry leaders. SICA was also an invitee and the Directors participated. The 28th Annual General Meeting of SICA was held on 30.09.07. SICA launched its web site for the benefit of its members and cotton community.

SICA made a power point presentation on TEXSUMMIT 2007 held at New Delhi recently, at this meeting. Shree C.Soundara Raj ,President ,SICA while addressing the members touched upon many important matters related to Cotton Trade and Industry.

Indian economy is posting a robust growth in GDP of 9%.The cotton crop estimated by CAB is 280 lakh bales for 2006-07 season and the trade projection for 2007-08 season is 315 lakh bales of 170 kgs bales.

Our exports are reported to be 55 lakh bale for 2006-07 season with a projection of 65 lakh bales for 2007-08 season. Urgent attention is drawn to Improvement in Ginning/pressing, continuation of Mini mission III and IV, expanding the coverage of HVI classing ,adoption of BT cotton in varieties also, and interactive meetings with farmers for quality awareness etc.

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