According to the latest cotton report of the Indian Cotton Federation (ICF), Cotton Corporation of India (CCI) has managed to get a good response to their e-auctions recently.
“Mills are buying for their near future requirements and exporters and big traders are buying in bulk quantities as per their assessment of the cotton market trends,” the report informed.
The unsold cotton with CCI as per market reports is approximately 62 lakh bales out of their total procurement of 86 lakhs bales in the current season.
Also as per market reports, the unsold cotton stock lying with cotton traders, ginners and MCX is approximately 12 lakh bales.
“The turmoil in Greece has put Indian hosiery garment exporters in a peculiar situation, although it seems temporary,” the report added.
There has been a drop of Rs 13 per kg of hosiery yarn produced by spinning mills which were doing well all through the year, which has lead to these mills slowing down their cotton procurement.
Cotton sowing is in progress in some pockets of Maharashtra near Beed, as rains have been good till now.
However, Saurashtra region in Gujarat may see a drop in cotton sowing which may be compensated by increase in sowing in states like Madhya Pradesh, Telengana and Andhra Pradesh.
Approximately 70 per cent cotton sowing has been completed in major cotton growing states wherever rains have been timely.
In Amreli district in Gujarat, re-sowing will take place because of the recent floods in this region of Saurashtra.
However, as per reports, khariff sowing is up by more than 50 per cent in this cotton belt than in the same time last season.
Quoting experts, the report added that yarn movement is reported to be slow and may affect the cycle of funding for cotton purchase.
In Punjab, Haryana and Rajasthan, cotton sowing is almost complete. Good quality Punjab J-34 R/G was sold at Rs 3,830 per maund spot while in Haryana, good quality J-34 R/J was sold at Rs 3,730 per maund spot.
In Gujarat, cotton sowing is in progress and in Saurashtra which produces 80 per cent of cotton in Gujarat; farmers are shifting to groundnuts and pulses as they feel it to be more remunerative.
Due to delay in monsoon in Kutch region, in areas bordering Rajasthan and North Gujarat, sowing is yet to be completed and Anjar in Kutch region has not received sufficient rainfall for sowing cotton.
The price for good quality S-6 was quoted at Rs 34,800 spot per candy while V-797 R/G was quoted at Rs 25,500 spot per candy.
Monsoon has been delayed in some pockets of Marathwada and Vidharbha in Maharashtra due to which sowing is yet to take place, while in Khandesh region, sowing is progressing well.
The monsoon has been good in Madhya Pradesh and cotton sowing is in progress and might see an increase in the sowing area in this region which will benefit cotton spinning mills in the state.
