The Cotton Corporation of India (CCI) has procured approximately 13 lakh bales by November-end at various centres in Andhra Pradesh, Maharashtra and Gujarat, Indian Cotton Federation (ICF) has said.
The all India daily raw cotton arrival is currently around 2 lakh bales and CCI is going to procure Rs 12,000 crore worth raw cotton at MSP to help the cotton trade.
In Punjab, Haryana and Rajasthan, cotton arrival is picking up quickly due to clear and fine weather, ICF said. As on November 30, 2014, the price of J-34 r/g in Punjab was Rs. 3,410 per maund spot, while in Haryana it was Rs. 3,305 per maund spot and in Rajasthan it was quoted at Rs. 3,320 per maund spot. In this region cotton prices are ruling steady and all textile mills have started procuring cotton actively as per their requirement.
In the western Indian state of Gujarat, daily cotton arrival has picked up to approximately 50,000 bales. “Prices seem to be stable at Rs. 33,200 spot as most of the mills have started procuring cotton actively at current prices. V-797 r/g was priced at Rs. 26,000 spot per candy,” the ICF report said.
In Maharashtra, daily cotton arrival is picking up quickly and the CCI has turned out to be a major buyer in parts of the state. The CCI is procuring cotton directly at 40 centres in the state and at nearly 27 centres through the Maharashtra Federation at MSP rates. The price of good Bunny cotton of 29 mm was Rs. 33,500 spot in last week of November.
In the central Indian state of Madhya Pradesh, cotton arrival is good in terms of both quantity and quality and the price quoted for good 29 mm Bunny was Rs. 34,000 spot in last week of November.
In the southern state of Karnataka, good quality Bunny cotton has started arriving in reasonably good quantities in most of the cotton centres and ginners too are actively procuring cotton at above MSP rates as cotton seed market has improved slightly.
In Andhra Pradesh, CCI is a major buyer of cotton and most of the ginning factories are working on lease to CCI as ginners are unable to get parity at current MSP rates of cotton because the CCI is selling cotton seeds at low rates to get liquidity to procure more cotton from farmers.
Textile mills in Tamil Nadu have started to actively buy cotton, and yarn movement has also improved. “Many Mills fear the quality will deteriorate abruptly after the end of January and are eager to secure good quality cotton,” the ICF added.
