Commodity News
HeadLine : With new arrivals, cotton rules above MSP
Date : Sep 20 2021
The new cotton crop has begun arriving in northern markets, Karnataka and Telangala with prices of kapas (raw cotton) ruling at least 10 per cent higher than the minimum support price (MSP) levels fixed by the Centre for the new season starting October. The trade estimates the daily market arrivals at over 10,000 bales, bulk of it mainly in the North. Modal prices (rates at which most trade in the natural fibre takes place) of raw cotton are hovering between Rs.6,400 and Rs.7,000 per quintal across various markets, depending on the quality and moisture content. Prices are higher than the MSP of Rs.5,726 per quintal. The trade expects the North India crop to be better than last year’s 65 lakh bales. “The crop won’t be less than last year. The rains are seen boosting yields, while in some areas there has been some impact. Overall, we expect the crop to be 1-2 lakh bales higher than last year,” Phutela said. Cotton acreage this year is lower by 5.75 per cent at 119.66 lakh hectares, as per Agriculture Ministry’s latest data. “The overall crop condition is good as on date and, based on the feedback from the 10 growing States, the yield will be much higher this year and quality very good,” said Atul Ganatra, President, Cotton Association of India (CAI), the apex trade body. CAI is expected to come out with crop projections by the month-end. CAI had earlier estimated closing stocks for the crop year 2020-21 as on September 30 at 82.50 lakh bales of 170 kg each. Sporadic arrivals have also started from Karnataka, Andhra Pradesh, Telangana, Maharashtra and Gujarat.  

Source: Business Line
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