Coimbatore, Feb 17 (PTI) The farm gate price of good quality cotton during March to June this year would be between Rs 7,500 to Rs 8,000 per quintal, according to a market survey conducted by Tamil Nadu Agricultural University here.
Increase in demand due to higher consumption estimates across the globe, increased exports from India along with minimal opening stock caused the price of cotton to rule on the higher side from November 2021 till date.
Since there are good chances for prices to increase, considering the continuation of current market sentiments, the farmers can store and sell the cotton during March-June and encouraged to take their Maasipattam (Feb-March) sowing decision based on the market advisory.
Being a major consumer of cotton, Tamil Nadu’s total area under the crop in 2021-22 is 0.74 lakh hectares which is 33 per cent lesser than the previous year and production is 1.61 lakh bales which is 35 per cent lesser than the previous year.
The major cotton varieties grown in Tamil Nadu are RCH, Surabhi and DCH and millers procure cotton from Gujarat, Maharashtra, Andhra Pradesh and Karnataka for their industry demand, the varsity said in a release.
The Tamil Nadu-Irrigated Agriculture Modernization Project (TN-IAMP) funded Price Forecasting Scheme of the Centre for Agricultural and Rural Development Studies in the University analysed the past 26 year historical cotton prices that prevailed in Konganapuram Cooperative Marketing Society and conducted a market survey to facilitate farmers to take up selling and sowing decisions, it said.
The International Cotton Advisory Committee has estimated the global cotton consumption to rise about 25.63 million tonnes for 2021-22, which is five percent higher than 2020-21.
As per USDA reports, China and India together are expected to account for more than half of the global cotton crop in 2021-22, as the world cotton production is projected at 26.5 million tonnes, six per cent higher than 2020-21.
As per the estimates of Cotton Association of India, cotton consumption in India is expected to be increased to 345 lakh bales, which is 2.8 per cent increase over the last year.
Cotton production is estimated to be 360 lakh bales (1 bale of 170 kg) in India during 2021-22 and India’s cotton export is estimated at 48 lakh bales against 78 lakh bales estimated in 2020-21 year.
According to CAI, India’s cotton imports during 2021-22 will increase by five lakh bales to 15 lakh bales. The total stock held by spinning mills and stockists by the end of December 2021 is estimated at 113.77 lakh bales and India exports cotton mainly to Bangladesh, China, Vietnam, Pakistan and Indonesia. PTI NVM HDA HDA
