Current Market Developments:
- Cotton prices in most of the spot markets of Gujarat, Rajasthan and Maharashtra have recovered slightly due to weather concerns.
- The domestic and export demand in yarn is weak and due to this there is an uncertainty in the market. If the weather remains favourable in the cotton growing belts the arrivals of new cotton in the mandis will increase by October end so there are less chances of a major uptrend in cotton prices right now. Moreover, the overall domestic cotton production scenario is also estimated to be higher than last year.
- New crop arrivals are getting affected in spot markets of Maharashtra and Gujarat as India Meteorological Department predicted bad weather in many areas. Currently, the spinning mills are buying as per there immediate requirements. The mills are not sure of the price trend for yarn and export demand. Multi-National companies are adopting wait and watch policy before buying.
- As the south-west monsoon rains were normal to excess in most of the cotton growing States, all India cotton acreage reported an increase of 8 percent at 127.50 lakh hectares during the current season as compared to 118.59 lakh hectares acreage last year. Significant increase in acreage of 27 percent was noted in Karnataka, Gujarat reported 13 percent increase in acreage, Rajasthan reported 9 percent increase, while Maharashtra has reported 7 percent increase in acreage.
- Considering the higher acreage and the current crop conditions the Ministry of Agriculture in its 01st crop advance production estimates has increased the cotton production by 10 percent at 341.90 lakh bales of 170 kgs each as compared to 312.03 lakh bales of 170 kgs each last year 2021-22.
Cotton Price Movement Vs Seasonality at Key Markets
Progress Under Cotton Acreage: Major States
Domestic Cotton Supply & Demand Scenario
Global Cotton Supply & Demand Scenario
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