Cotton Association of India (CAI) has released its March estimate of the cotton crop for the season 2018-9 beginning from 1st October 2018. The CAI has estimated cotton crop for 2018-19 at 321 lakh bales of 170 kgs each which is lower by 7 lakh bales than its previous estimate of 328 lakh bales made during last month.
The CCI has started arrangements for ginning and storage of cotton for the ensuing harvesting season. The central government had newly lifted the MSP on medium-staple fibre cotton by 28% to Rs 5,150 per quintal and long-staple by 26% to Rs 5,450. Traders expect that the hike would help firm up prices in India compared to the last season, when those were lower compared with the global market.
The mills learnt more about the e-auction system of the CCI for sale of cotton that it obtains.Around 200 mills in the State are registered with the CCI and 30 to 35 buy cotton regularly through e-auction.
The present cotton scenario and cotton sales by the CCI this season was discussed by the CCI officials and textile mills. Cotton Corporation of India (CCI) has purchased 11 lakh bales of cotton so far this cotton season (October to September) and sold four lakh bales.
Trading activity remain moderate due to renewed buying interest at the lower level at the cotton market on Tuesday. However, the availability of quality cotton resulted in some trading activity.
Trading on ready counter was fairly moderate as needy spinners went for quality cotton. The following deals were reported to have changed hands on ready counter: 7,000 bales, Alipur, at Rs7,000; 400 bales, Jalalpur, at Rs7,100; 2,487 bales, Rahimyar Khan, at Rs7,300; and 800 bales also, Rahimyar Khan, at Rs7,000.
Government of India to control fluctuation in cotton prices and ensure availability of cotton for domestic mills has directed Cotton Corporation of India Ltd. to sell its stock of cotton (cotton season 2015-16), purchased under MSP, to Spinning Mills in the Micro Small Medium Enterprise (MSME) category.
The Minister of State, Textiles, Ajay Tamta in a written reply to a Lok Sabha question said that government reviews the cotton availability position from time to time.
The Ivory Coast is largely market-based and depends heavily on the agricultural sector. In a bid to increase production in the wake of a unsatisfactory cotton harvest, the Ivory Coast government increased mandated cotton price for farmers by six percent for 2016-17 seasons hoping that this increase will permit an expansion in the number of farmers and bump up production, a government spokesman said.
Ivory Coast, before a 2002-2003 civil war which split the country in two and halved production was one of the region's major cotton exporters, with an annual output of about 400,000 tonnes.
The higher consumption of cotton this season by the textile industry has left reduced stocks of cotton with ginners which is also worrying spinners who have yet to see the season through.
On Tuesday at the cotton market, as quality lint remained in short supply against higher consumption, the cotton prices move upwards. But,the Karachi Cotton Association (KCA) kept its official rates fixed at Rs5,000 per maund.
The cotton analysts failed to understand as to why the KCA left its rates unchanged despite substantial increase in prices on ready deals.
In the last week of January cotton prices ruled at at Rs14,420 a bale (170 kg) – near a five-year low which is some 14 percent below the levels seen at beginning of the cotton season, which began in October. However, cotton prices have now been showing signs of recovery over the last one month.
Decline in prices is attributed mainly to record domestic production and waning exports to China due to change in its reserve policy.
Textiles mills and spinners has decided put off buying cotton and has taken to wait-and-watch approach to stocking the commodity, as they feel that when new crop arrives in a couple of month, supply will improve and prices will drop.
