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    Market Conditions: Demand And Quality Problems Make Indian Cotton Fall

    2021/12/7 12:24:00 0

    Indian Cotton

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    In the past two weeks, India's cotton price has dropped by 1500 rupees per kilogram due to the global demand reduction caused by the epidemic panic and the poor quality of raw cotton in Punjab.

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    But the price that farmers get is still much higher than the minimum support price (MSP) of 5925 rupees per kilogram.
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    Industry observers said the highest average price of cotton in India in the past month was about 9500 rupees an ounce. This means that 70% of the products are purchased at around 9500 rupees, and nearly 10% of the high-quality products are even sold for more than 9500 rupees. Nearly 20% of them are below the average price due to poor quality.
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    However, in the past 10 days, the average price of cotton has remained at about 8000 rupees per hectare.
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    According to the Mandi Council of Punjab, the state's cotton purchases were 957, 000 kilograms as of Saturday. Among them, only 5545 kg agricultural products are purchased by private enterprises at a price lower than MSP.
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    Chander Kant Garg, a cotton grower in Manza, said the quality of cotton in batinda and MANSA, the main cotton growing areas, was the worst ever. Garg said he had a lint inventory worth 30 million rupees, but because of the poor quality, no textile sector was ready to buy it.
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    The reflectance values that determine whether cotton samples are bright or dim continue to be far below the acceptable values of 72-82. Due to the extensive invasion of pink bollworm in these two areas, cotton lost its white color. Traders buy cotton at competitive prices to meet demand, but there are no buyers on the market for this yellow cotton.
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    The industry believes that with the clearer prospect of Omicron, a new variety of new coronavirus, and the recovery of demand, the price may rise again after 15 days.
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    Rajnish goel, coordinator of Mandy cotton state, said the percentage of cotton arriving at the purchasing center this time was nearly 54% lower than last year.
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    Last year, as of December 4, Punjab produced more than 2.1 million kg of raw cotton, compared with 957 thousand in the same period this year. He added that this was due to damage to existing crops by this deadly pest.
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    "In accordance with the traditional trend, cotton deliveries should have increased last week, as farmers have finished planting wheat. Now the daily arrival of cotton is about 15000 kilograms."
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    Rakesh Rathi, director of the cotton association of India Ltd., an organization engaged in cotton export, spinning and ginning, said the textile industry had reduced cotton imports based on its economic decisions.
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    "Cotton prices in Punjab have been high since the beginning of the season as traders have to meet export demand. Cotton harvests in central and southern states of India have been delayed due to rainfall and cotton prices have reached an all-time high. New works have begun to arrive from other states, and prices in Punjab are expected to be revised at this stage. However, they may not fall below the RP 8000 mark 。”  
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