Commodities

Domestic cotton production, yield to scale new highs

Even as domestic cotton yield has made some breakthrough, the overall production for the current season is all set to touch a new high of 240 lakh bales. Arbind Gupta reports

Domestic cotton prices ruled steady during the fortnightly, even as international prices on the New York exchange declined to some extent. According to trade sources, the domestic prices will continue to maintain its present trend. "At least I don't see any reason for the prices to fall down from this level in the near future as there is hardly any supply. However, if rains get further delayed then prices may find some psychological support. But this may not result in any actual increase in prices as most of the mills have already covered their requirements," said Mr M B Lal, managing director, Shail Exports and former CMD of the Cotton Corporation of India.

Meanwhile, the East India Cotton Association (EICA) in its recent meeting has estimated the final crop size at 240 lakh bales. So far national arrivals have already touched around 236 lakh bales. Daily arrivals are hovering around 5000-6000 bales. "The EICA has estimated a figure of 240 lakh bales for the current season. With arrivals due from the Tamil Nadu's entire summer crop and some arrivals still awaiting from Gujarat and Karnataka, we will able to touch the figure of 240 lakh bales," stated Mr K F Jhunjhunwala, president, EICA.

Apart from achieving a new high in production, the current season has witnessed a major breakthrough in yield. The average national yield has taken a big leap at 440 kg per hectare. In the irrigated northern region, the yield has gone passed 500 kg per hectare, even as Rajesthan saw yield crossing 710 kg per hectare which is higher than the world average of 600 kg. Significantly, Gujarat with around 65 per cent area under rainfed condition has seen yield rising to 528 kg per hectare. "Improvement in yield is certainly a major event for Indian cotton. Low yield had not only made our cotton less competitive but also discouraged farmers to opt for cotton as their preferred crop. Despite softness prevailed in prices during the season, the farmers have been able to maintain its income due to increase in yield, " said a trade source.

Meanwhile, sowing for the new season has been completed in the north where for the first time Bt cotton was approved for commercial cultivation. As per sources, around one lakh hectare has been sown under Bt cotton. The total area under Bt cotton during the new season is estimated to go up to around 16 lakh hectare from the present 5 lakh.

After around 8-10 days of delay, the south west monsoon has finally reached Maharashtra. The farmers have heaved a sigh of relief with the arrival of rains since more than 60 per cent area in the central region is rainfed. "The next few weeks will be very cricial for sowing. we expect everything to move smoothly," said a trader.