Gujarat ginners bullish on cotton production

All Gujarat Cotton Ginners Association (AGCGA) has predicted about 12 million bales of cotton production in Gujarat for the year 2011-12 at its annual general meeting. According to the association, cotton production in Gujarat is expected to increase by 1-1.2 million bales compared to last year’s production.

“We are expecting a good cotton crop in Gujarat this year as all the factors are favourable. This year cotton production will be around 12 million bales in the state as against 10.8-11 million bales last year,” said Dilip Patel, president, AGCGA.

As per AGCGA, the cotton production in India will be about 36 million bales which was about 32.5 million bales previous year. Patel said, “The area of cotton has increased in Gujarat as well as across India. As farmers are getting a good price for the commodity, they are increasingly shifting to the cotton crop.”

As per the data provided by the agriculture department of Gujarat, cotton covered 2.96 million hectares area in this Kharif season, last year it was 2.63 million hectares in Gujarat.

Cotton sowing has increased from last year’s 17.48 million hectares to 17.95 million hectares this year as per India’s data provided by the department of agriculture.

“The cotton prices will be between Rs 30,000 to 40,000 per candy during the season. Last year the cotton prices went up to Rs 62,500 a candy as local and international demand was huge. Against it this year the cotton crop size has increased,” Patel further added. Patel is expecting around 7 million bales of cotton exports from India this season.

At present the cotton prices that are ruling between Rs 38,000 and Rs 39,500 per candy of 356 kg. About 13,000-15,000 cotton bales arrive every day in Gujarat but so far the new cotton arrivals are very low this year as the season is delayed by one month owing to late sowing.

“The prices will move down after Diwali. For a short term the cotton prices will remain on Rs 37,000-Rs 39,000 as arrivals are not so high and demand of export and mills are also to be taken care of,” said Arvind Raichura of Balkrishna Ginning from Rajkot about the pricing.