All India pressing figures till April 30, 2015 are approximately 336 lakh bales, while all India arrivals have dropped to approximately 40,000 bales per day.
CCI has sold 6.68 lakh bales through e-auctions out of their procured stock of 86 lakh bales, while the Maharashtra Federation is holding a stock of 4.75 lakh bales procured by them.
According to an Indian Cotton Federation (ICF) report, unsold stocks lying with the ginners and traders are approximately 20 lakh bales.
The increase in duty drawback for garments exporters from 6 to 7.5 per cent and for export of yarn which has been increased from 2.08 to 3.10 per cent will offer boost to industry, it said.
As per trade reports, exports of raw cotton stands at approximately 50 lakh bales and CCI could release more stock to consuming mills to keep cotton lint prices steady.
ICF added that as per reports, CCEA has approved extra funds for government federations and CCI to meet losses on their MSP operations.
Union Cabinet also gave nod for more amendments to Company law with regards to declarations made before commencing business.
Farmers group are of the view that the cotton area may not shrink during 2015-16 season as land conditioning has begun in many cotton producing states.
ICF noted that in Punjab, Haryana and Rajasthan, arrivals of kappas are quite insignificant as season is at its end in this region.
The price quoted for good J-34 r/g in Punjab is Rs 3915 per maund spot while in Haryana it is Rs 3860 per maund spot and in Rajasthan it is Rs 3840 per maund spot.
Cotton sowing has already begun and there is good demand from farmers for BT and conventional varieties as per reports from many tracts from Northern India.
Cotton arrivals are being maintained at approximately 15,000 bales per day in Gujarat as the recent spell of hailstorm has taken a toll on the standing crops.
Good quality S-6 is quoted at Rs 36,100 spot per candy and good quality V-797 R/G is priced at Rs 26,000 spot per candy.
The daily kappas arrivals in Maharashtra is approximately 10,000 bales and price quoted for good quality Mech-1 is Rs 36,500 spot per candy.
In Madhya Pradesh, the daily kappas arrival is very insignificant and prices quoted for good quality Bunny is Rs 36,800 spot per candy.
The daily kappas arrivals have dropped drasticallyin Andhra Pradesh and ginners have become active after increase in cotton price in the last fortnight.
The price quoted for good quality 31 mm Guntur Mcu-5 is Rs 36,800 spot per candy and good quality 30m Bunny of Warangal is priced at Rs 35,500 spot per candy and 29mm Bunny of Adilabad is priced at Rs 34,500 spot.
In Karnataka too, kappas arrivals have dropped drastically as farmers are slowly bringing in their kappas stored by them both in North Karnataka and Raichur.
Good quality kappas is being procured from farmers at Rs 4500 per quintal by ginners, while cotton seeds are sold by ginners at Rs 2000 per quintal.
Price for good quality Bunny of 30mm is around Rs 36,000 spot in North Karnataka while 29mm Bunny of Raichur was sold at Rs 35,000 spot per candy and good quality Dch-32 was sold at Rs 48,000 spot.
ICF noted that daily kappas arrivals are very poor in Tamil Nadu and that good quality DCH-32 of 35 mm is priced at Rs 48,000 spot per candy.
While, RCH of 31 mm is sold at Rs 37,500 spot per candy and that buying from mills continued as cotton arrivals are also still continuing.
“Domestic mills crave for quality cotton at affordable prices and also raw material security and also sustained supply to run their units,” ICF observed.
Standing plants are in healthy condition, but unseasonal rains in delta belt of Thiruvarur and Thanjavur tracts have damaged cotton crops, which is secondary to main crop.
The surprising stability shown by the Cotlook-A Index at 73.55 cents per lbs and New York Futures maintaining at 65.5 cents per lbs consistently are signs of good activity in the cotton market.
“This is despite the huge unsold cotton stocks lying with the cotton trading community worldwide,” ICF added in the report.
ICAC has published a FAO study report which states that there is a need for investment in sustainable cotton for social, environmental and economic reasons.
ICF quoted market reports by saying that though China’s cotton imports are down, India has exported largest volume to China out of India’s overall cotton exports.
Also according to reports, Burkina Faso and Mali are expected to increase their cotton production targeted earlier.
