Cotton Arrivals Peak, Plans To Launch Bt Futures Contract

Mumbai: Cotton arrivals have peaked after a slowed down due to Diwali and rains in many parts of the country. In Punjab, Haryana and Rajasthan the desi variety is quoted between Rs 1,600 and Rs 1720 per maund (approx 20 kg) in the spot market, while J-34 was Rs 1,930-2020 per maund.

“Buyers have started purchasing in Punjab, Haryana and Rajasthan after the issue on quality due to pest attacks was resolved. Local mills are yet to enter the market as feel that the prices will come down soon,” said a trader from Punjab.

In Gujarat, the Sankar-6 variety was quoted at Rs 19,500-20,200 per candy, while V-797 is priced at Rs 15,050-15,800 per candy. In Madhya Pradesh, MECH1-H4 was selling at Rs 19,100-Rs 19,900 per candy.

The 28-30 mm staple fibre in Maharashtra was quoted at Rs 18,400-Rs 19,800 per candy.

Andhra Pradesh’s MCU-5 variety is quoted at Rs 20,200 - Rs 21,000 per candy and in Karnataka the DCH-32 grade was at Rs 28,000 - 29,900 per candy.

“Buying in Gujarat is in full swing, while mills from the south were seen purchasing in Maharashtra. There was good demand for export quality Bunny and Brahma variety in Karnataka,” he said.

New cotton contract

Surendranagar Cotton Exchange in Gujarat plans to launch a new contract for Bt cotton variety as the production of tradition varieties such a Kalyan has declined drastically. Named as “BT Cotton 118”, the contracts will be available for trading from next year.

Production trend

Cotton output in Maharashtra, the second largest producer in the country, is projected to increase 40 per cent to 75.50 lakh bales (lb) during 2007-08 (October-September) against 54.10 lakh bales of 170 kg last season, according to trade estimates.

The country’s cotton production is estimated 15.69 per cent up at around 339 lakh bales against 293 lakh bales last year.

“Overall production has improved in the country mainly due to switchover to Bt cotton. Moreover, the yield per hectare has gone up substantially,” said Vijay Trivedi, Associate Vice-President, Commodity Research Consulting Company.

The average yield rose to 511.30 kg per hectare against 481.85 kg per hectare last year. Area under cotton jumped to 100.96 lakh hectares from 91.98 lakh hectares. Gujarat registered the highest yield at 800 kg per hectare, while it was 790 kg per hectare (775.90 kg per hectare) in Punjab.

In Gujarat, production is projected to rise 9.72 per cent to 115 lakh bales against 105 lakh bales clocked last year. Punjab is likely to produce 31.50 lb (27.80 lb), Haryana 18 lb (17.43 lb), Rajasthan 11.75 lb (10.60 lb), Madhya Pradesh 22 lb (18.80 lb), Andhra Pradesh 41 lb (38 lb), Karnataka 10 lb (8.05 lb), Tamil Nadu 5.5 lb (4.95 lb), Orissa 1.25 lb (1.05 lb) and other states 50,000 bales (52,500 lb). The loose production has remained static at last year’s level of 6.60 lakh.