Major African cotton producer Mali expects to increase output to 1 million tonnes annually within two to three years as it mulls new cotton varieties to boost yields, its agriculture minister said in an interview on Monday.
Mali is targeting a record 2019/20 cotton crop of 800,000 tonnes this year which is expected to make it the top producer in Africa, edging out rival Burkina Faso.
As cotton prices ruled firm for most of the 2018-19 marketing season starting October, the state-run Cotton Corporation of India (CCI) could purchase only 10.7 lakh bales under the MSP scheme. The bulk of the procurement — over 70 per cent — has been from Telangana followed by Maharashtra.
According to CCI, market arrivals of cotton till April 1 stood at 254 lakh bales of 170 kg each. The Cotton Association of India (CAI), the apex trade body, had pegged the crop size at 328 lakh bales for the year.
Cotton futures on the Intercontinental Exchange (ICE) will have a direct impact on Indian prices. ICE cotton futures traded at 74.13 cents on Wednesday. Any spurt in ICE will make a favourable case for Indian cotton exports. Atul Ganatra, President, Cotton Association of India (CAI), the apex trade body comments, “Uncertainty still looms over the trade truce between the US and China. This is causing a range-bound movement for cotton. Indian cotton prices have now bottomed out as there is no room for further correction.
Since its establishment in 1978 Esquel Group has developed into a high-performance company and produces 24,000 tons of cotton knit fabric and 130 million meters of yarn dyed cotton woven fabric each year. The group has established a vertical supply chain, which means that everything from raw cotton, yarn spinning, fabric production and finishing, garmenting as well as packaging is controlled by Esquel. In this way highest quality standards can be guaranteed.
The APTMA spokesman has expressed alarm over the cut of regulatory duty on the import of cotton yarns from 10% to 5. The duty was charged to restrict strident increase in import of undervalue and subsidized cotton yarn entering in our domestic commerce. APTMA spokesman termed it as contrary to the cascading principle of tariff, saying that the domestic spinning industry is fighting for its survival as both its major raw materials i.e. cotton and Polyester Staple Fibre are strained with the imposition of import levies despite shortage in domestic production.
Prices of Shankar 6, the popular cotton variety used by mills, are ruling at around Rs 43,000 per candy (a candy is about 355 kgs). The landed cost for imported cotton of a similar variety works out to Rs 48,000-50,000 per candy. Especially in the export market, cotton prices are ruling lower than the international market giving mills the much needed momentum.
R. Senthil, co-ordinator of the waste cotton traders's association, said raw cotton attracts 1 % cess in the State and waste cotton also attracts 1 % market cess.After the implementation of GST most of the States that were collecting the cess have removed the tax levied on cotton or waste cotton.Tamil Nadu contintues to collect it.
Under GST, cotton attracts 5 % duty. Hence, there is no need for another cess, he said. About 10,000 traders handle up to eight lakh kg of waste cotton a month in the State.
The Cotton Corporation of India (CCI) is prepared to procure some 100 lakh bales of cotton either at Minimum Support Price (MSP) or market prices this season with the cotton arrivals beginning in full swing, according to CCI chief MM Chokalingam. So far this season CCI has already purchased some 62,000 bales of cotton at Minimum Support Price (MSP).
Uzbekistan the world’s sixth largest cotton producer has signed contracts with companies from Russia, Turkey, South Korea, Singapore, Moldova and many other countries for the export of finished and semi-finished textile products for more than $1 billion during the recent 13th International Uzbek Cotton and Textile Fair held in Tashkent.
The Southern India Mills Association - Cotton Development and Research Association(SIMA-CD&RA) in association with Point Industries, a sister concern of the Coimbatore-based Sharp Industries has developed a new device to pluck kapas (raw cotton) a hand held machines that run on batteries, which farmers usually pluck manually.
