The cotton prices have seen an increasing trend in the new year.
Cotton spot rate has reached this season’s high of Rs10,200 per maund, taking a cue from an uptick in international prices. At the same time, the laggard production estimate kept panic buying.
During the last week, a bullish trend was witnessed in the local cotton market due to the large textile and spinning mills’ sufficient interest in the buying of quality cotton. The cotton rate increased by Rs 200 to Rs 400.per maund due to an increase in buying by mills because of the decrease in quality cotton availability. On the other hand, an increasing trend in cotton prices internationally also affects the local cotton market.
The rate of cotton is increasing in Brazil, Argentina, and Central Asia, while the increasing trend in the prices of cotton in India is a little bit more.
In a TV interview, Chairman Cotton Association of India Atul Ganatra said that India’s cotton production is expected to be three crore 70 lac bales in 2020-21. Cotton Cooperation of India is giving monetary benefits to the farmers and ginners. The financial help played a pivotal role in increasing cotton production in India, but it is observed that it was continuously ignored in Pakistan. Positive steps should be taken to increase the production of cotton.
Last year germination remained around 40 to 50 percent in cotton seed, which resulted in a record decline of cotton production, which has so far reached hardly 5.8 million bales due to substandard sources. If the same substandard seeds are sown this season, there would be a further decline in the production.
