Major points stated by Atul S Ganatra , president of CAI-
In the upcoming season, the sowing area will increase up to 15-20% in India.
As the crop has sown early, it will be harvested sooner which can possibly lower the cotton rates.
Modern farmers are now aware of exchanges and trading concepts. Holds 15% of stock, to sell later.
Due to decrease in May NYCE , cotton prices might drop down but MCX no more seems to get affected with fluctuations in NYCE
MCX has approximately stocked 1 lakh bales whereas top 6 MNCs has 60 lakh bales. All of them coordinates with each other while selling and buying of bales and controls the market rates.
USA has increased the sowing area for the crop up to 20-25%.
The demand of removal of import duty on spinning mills is finally addressed by the government post two months, nevertheless CAI expresses gratitude.
Spinning mill lobby urges government to impose a limit on stock of cotton.
The coming half year seems extremely difficult for spinners.
Tamil Nadu power loom people are expected to go on a strike so as to decrease the rates of yarn.
Cotton yield is big concern in India as we own the largest area for the cultivation, still lag behind in average production. If we reach the average yield of world, our production can soar up to 40%.
CAI urges the government to bring revolutionary changes in seed technology.
Mill owners are disappointed by MNCs, alleged the latter of taking over all the profit earned.
Many of the mills in Andhra Pradesh and Tamil Nadu have diverted towards Polyester and viscose. Some mills have sold their reserved stock at market rates and earned a handsome profit followed by ceasing the production, which directly indicates the lower consumption of cotton.
Cotton trade has become more risky than before due to the new trading trends.
