Signs of improvement in cotton prices due to reduction in area in northern states and Gujarat

14-Aug-2024 01:05 PM

Mumbai. The price of cotton rose by 1.07 percent on the previous day to Rs 56,900 per candy (356 kg), the main reason for which is believed to be the decline in cotton sowing at the national level.

There has been a sharp decline in the sowing area of ​​​​cotton in Gujarat as well as northern states like Punjab, Haryana and Rajasthan.

Last year, the total sowing area of ​​​​cotton in the northern states was 16 lakh hectares, which has declined to 10.23 lakh hectares in the current year.

During the current season of 2024-25, the cotton production area has come down to 97 thousand hectares in Punjab, 4.50 lakh hectares in Haryana and 4.75 lakh hectares in Rajasthan, due to delay in shipment, the demand for Indian cotton has increased in neighboring countries.

Although the import of cotton has come to a standstill for the time being due to chaos in Bangladesh, but soon its import from India will start there when the situation becomes normal. Border trade has now resumed.

The strengthening of cotton seed prices is also expected to support the rise in cotton prices.

In southern states like Telangana, Andhra Pradesh and Karnataka, cotton sowing started with the first shower of monsoon this time,

which is almost over now. In Gujarat, the country's most prominent cotton producing state, the area under cotton has fallen sharply this time due to farmers giving special priority to peanut cultivation. At the national level too,

the cotton production area has come down to 110.50 lakh hectares, which is 10.75 lakh hectares less than last year's sowing area of ​​121.25 lakh hectares.

The futures price of cotton has fallen by 4 cents to 70 cents per pound in the New York Exchange. The arrival of new goods is going to start there from next month. In Punjab and Haryana too, the arrival of new cotton usually starts from September.