agribazaar
October 5, 2021
Sowing period: June to July
Harvesting period: October to January
Crop season: Kharif
Key growing regions:
- Gujarat – Botad, Mehsana, Patan, Rajkot, Surendranagar, Amreli, Junagarh
- Maharashtra – Chandrapur, Nagpur, Wardha, Buldhana, Yavatmal
- Telangana – Adilabad, Karimnagar, Khammam, Nalgonda, Warangal
- Madhya Pradesh – Badwani, Chhindwara, Khandwa, Khargone, Dhar
- Punjab – Bhatinda, Fazilka, Mansa, Muktsar, Faridkot
Production trend and Stock position:
- As per the Ministry of Agriculture first advance estimate released on September 21, 2021, Cotton production for FY 2021-22 was 362.19 lakh bales (lb) compared to FY 2020-21 which was 353.84 lb, up by 2.36 percent
- According to Ministry of Agriculture, the sowing acreage of Cotton as on September 17, 2021 was 119.66 lakh hectares (lh) down by 5.76 percent compared to 126.97 lh during the corresponding period
- According to government of Gujarat, first advance estimate, was 8.09 lb for 2021-22 up by 11.35 percent compared to 7.27 lb during the previous period
- According to ICAR-Central Institute of Cotton Research (CICR), Nagpur the overall acreage for 2021-22 cotton season could be 2-3 percent lower than the previous year
- The USDA’S World Agriculture Supply and Demand Estimate (WASDE) September report stated that the world 2021-22 production is projected higher with an increase in cotton production for the United States at 18.51 million bales from August’s month’s estimates of 17.26 million bales
Monsoon Update
For the country as a whole, cumulative rainfall during this year’s monsoon season till September 29, 2021 is below Long Period Average (LPA) by 1 percent. Details of the rainfall distribution over the four broad geographical regions of India are given below:
Market commentary: Price outlook
- The Government had increased the Minimum Support Price (MSP) of Cotton Medium Staple by 3.83 percent to ₹ 5,726 per quintal for marketing year (MY) 2021-22 compared to ₹ 5,515 in 2020-21 whereas for Cotton Long Stable had also increased by 3.43 percent to ₹ 6.025 per quintal for marketing year (MY) 2021-22 compared to ₹ 5,825 per quintal in 2020-21
- Cotton prices are in correction mode currently due to new season arrivals have started from the North India and overall prices may be more stable in immediate / short term
- As per different media sources, the CCI is left with limited stock and therefore the corporation is not cutting its rates of cotton sale
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