Cotton arrival declines by 11.74% in India

Cotton arrivals in India as on 31st December has declined by about 11.74 per cent to 8.80 million bales (each weighing 170 kg) as against 9.97 million bales corresponding period last year.

According to industry sources, cotton arrivals decreased this year due to decline in production, mainly in Gujarat, which is largest cotton producer state in country.

As per Cotton Corporation of India (CCI) data, cotton arrival in Gujarat has declined from 3.32 million bales to 1.94 million bales. After Gujarat, lowest arrival has been noted in Punjab with 683,000 bales as against 819,000 bales, followed by Madhya Pradesh with 515,000 bales as against 699,000 bales.

 

"The increase in gap of cotton arrivals between last year and this year is mainly because of Gujarat. Estimated production of cotton in Gujarat is down by 40 million bales due to poor monsoon." said Arvind Patel, vice president of Saurashtra Ginners Association (SGA).

On an average, about 55,000 bales cotton arrives every day in Gujarat. Out of this, around 28,000-30,000 bales of cotton have been arriving this year from Maharashtra, Andhra Pradesh and Rajasthan as against around 8,000 bales last year. Price of cotton is ruling at Rs 850-880 per 20 kg in Gujarat.

"Farmers are not selling their cotton as they want more prices. Arrival flow from other states has also restricted the price from rising in recent times," said Patel.

According to Arunbhai Dalal, an Ahmedabad-based trader and exporter, currently Gujarat farmers are not selling their cotton enough as they had seen price levels of Rs 951-1000 per 20 kg last year. "Only when prices will reach to this level, farmers will increase their cotton selling," said Dalal.

Meanwhile, cotton arrival in Andhra Pradesh has increased while in Maharashtra it is almost same. According to CCI data so far 2.23 million bales cotton arrived in Andhra Pradesh as against 1.54 bales in last year and 1.62 million bales cotton arrived in Maharashtra, last year it was 1.69 million bales.