Cotton Prices Rise On Lower Crop Estimate

Cotton prices in the current season are ruling higher than the last season due to low crop estimate.

The cotton crop for the current season (October 2000- Sept 2001) is estimated at around 139 lakh bales as against of 157 lakh bales in the last season.

This shortfall is attributed to acute shortage of rains in the cotton producing regions. However, slightly higher imports are expected to compensate for the shortfall in domestic production.

Imports in the current year are estimated at about 22 lakh bales as against 16 lakh bales in the last season.

Mill consumption of cotton in the current season too has declined to 145 lakh bales against 149 lakh bales of the previous year.

But non-mill consumption is expected to increase by 2 lakh bales to 17 lakh bales in the current year.

However, exports of raw cotton are expected to remain more or less at the same levels in the two years, at about one lakh bales.

As a result, the carry-over stock into 2001-02, beginning from October, will be at 37 lakh bales as against of 39 lakh bales in the current season (2000-01).

Prices of cotton variety Shankar-6, 'A' quality at present are quoted at Rs 21,500 per candy (of 356 kgs each) against Rs 20,500 offered in the last season, whereas 'B' quality is also quoted higher at Rs 18,500 a candy against Rs 17,500.

Quality Y-1 is being sold at Rs 18,500 a candy as against Rs 17,000 quoted in the last season.

Similarly, prices of Punjab J-34 at present have also gone up to Rs 18,700 a candy against of Rs 15,700 in the last season.

According to sources, the Maharashtra State Co-op. Cotton Grower's Marketing Federation Ltd. has so far procured 15.10 lakh bales from the farmers.

Taking into account a carry-over stock of 70,000 bales of the last season, it is sitting on 15.80 lakh bales of raw cotton. Of this, 4 lakh bales have already been sold, leaving a saleable stock of 11.80 lakh bales for the current season.