As cotton prices are below the government’s minimum support price giving excellent export parity to Indian cotton, the trade is confident about achieving export target of 50 lakh bales of 170 kg each.
“At present the current rate of 29mm (milimetre) good quality cotton is Rs 42,000 per candy in the spot trade, which was Rs 41,000 per candy during the same period of the previous year. At this rat,e Indian cotton is having good parity for export.
If this rate continues for another 45 days, we will achieve our export target of 50 lakh bales very easily,” said Atul Ganatra, president, Cotton Association of India (CAI).
“As on today, Indian cotton quality wise rate is ruling from Rs 40,000 to Rs 42,000 per candy for 27mm to 29 mm cotton. At this rate Indian cotton is the cheapest cotton available in the world due to which, there is a good demand for Indian cotton from across the world. Since past many years, India has been a net cotton exporting country,” said Ganatra.
This year, cotton sowing in India has taken place in around 123 lakh hectares. But unfortunately the rain has not supported and in September month rain was very less and entire month of October was dry. Particularly, states like Gujarat had rain deficit of 28%.
There was rain deficit in states like Karnataka, Telangana and Maharashtra too. Due to shortage of rain, this year there will be no third and fourth picking in most of these cotton growing states. In regular course in India, farmers take 4 to 5 pickings.
The government of Maharashtra and Telangana had given instructions to the farmers to remove cotton plants by December 31, to avoid pink bollworm problems. As per the Cotton Association of India crop committee’s last meeting held on March 1, 2019, the committee has estimated Indian crop size of 328 lakh bales of 170 kgs against previous month’s estimate of 330 lakh bales. Compared to last year’s 365 lakh bales, Indian crop size in the current year will be lower by 37 lakh bales, down by 10.13%.
Against this year’s crop size of 328 lakh bales upto February 28, 2019, 213.42 lakh bales of cotton have arrived in the market, which is 65% of the total crop size. The current estimate of CAI is lower by 8.6% than its first estimate of 348 lakh bales issued in October.