Rains in producing regions of Gujarat have cooled fears of a smaller cotton crop. Prices on Monday dropped by Rs 200-300 a candy of 356 kg. Moreover, weak demand from mills and higher sales by farmers and ginners aided the price fall.The new A grade S-6 variety traded at Rs 37,200-37,500 a candy and B grade at Rs 37,000-37,200. The new V-797 was offered at Rs 30,000-30,300 a candy. In Maharashtra, the average grade quoted at Rs 37,400-37,600 a candy and A grade at 37,000-37,300.
In Adilabad (Andhra Pradesh), new cotton traded at Rs 38,000-38,500 a candy. In Guntur (A.P.), the 31-mm variety was offered at Rs 39,500-40,000 a candy. In Warangal (A.P.), the former quoted at Rs 38,500- 39,000 a candy. In Karnataka, the Jaidhar 28-mm variety traded at Rs 37,000-37,500 a candy, 29-mm quoted at Rs 37,000- 38,000 a candy and 30-mm at Rs 38,200-38,700.
A Rajkot-based trader said: “Cotton traded down on the expectation of good yield as rain lashed producing areas and higher sales by ginning and traders. Except this, demand from mills was weak.”
So far, sowing has been completed in 2.34 million hectares against 2.95 million hectares last year in Gujarat, while groundnut sowing has declined from 1.42 million hectares to 1.18 million hectares this year.
The recent rain will help control the damage to the cotton crop in Gujarat, mainly in the Saurashtra region which was almost dry during July and August. During these months, both groundnut and cotton were affected, said Junagadh Agriculture University sources. The rain that has come in the last one week will save the standing cotton crop,” they said.