Lacklustre demand for cotton is likely to cast its shadow on the demand for cottonseed next kharif season. Industry experts foresee a certain downward trend in the seed sales next year if the present situation continues in the cotton sales season. The industry is forecasting a flattish uptake from farmers next year, if the cotton prices improve to Rs 5,000 a quintal.

Unlike in the past, the seed industry is saddled with huge inventories this time. The carry-over stock is put at two crore packets (of 450 gm each) as against the likely demand of four crore packets next year. The estimated production for this seed production season is pegged at 3.5 crore-4 crore.

Andhra Pradesh, a major contributor to the seed production, has witnessed some strain in the rabi season (the seed production season for major crops) because of the Nilam cyclone in the sowing season.

The drought-like conditions and lack of power too contributed to the farmers woes.

“The cottonseed belt of Mahboobnagar district was adversely impacted this season,” Ramakrishna, President of Seed Growers’ Association, which is affiliated to the CPI(M), said.

P. Sateesh Kumar, Former President of Seedsmen Association, said the cotton acreage saw a dip of 10 per cent in the North. In Maharashtra too,the acreage fell by 3-4 per cent. Andhra Pradesh alone witnessed a record acreage of 52 lakh acres this year, surpassing the paddy area.

Andhra Pradesh is a major player in the seed industry with a total production of 40.50 lakh quintals of seed last year.

Though paddy and groundnut had lion’s share of 15.20 lakh and 12.66 lakh quintals, the production of cottonseed doubled last year from 22,000 quintals to 41,200 quintals.

The hopes of farmers were dashed following series of dry spells and the clone in the kharif. As a result, the yields and production came down significantly.

The market prices for cotton too are not encouraging, forcing them to sell the commodity below the minimum support price in some mandis.

“If the situation remains the same in the next few months, the prospects would not be very promising for the seed industry next season,” he said.

The drop in acreage in the North was attributed to the sudden spurt in the interest in guar.

“We have seen traction in Andhra Pradesh too. We are told farmers in Anantapur went for this crop that is in huge demand,” Sateesh Kumar said.

A top executive of seed company, who doesn’t want to be named, said that the situation could change the cotton prices go up to Rs 5,000 towards end of the buying season.

Related Topics