Cotton prices rise in Maharashtra ahead of new season
2024-08-30 16:35:50
Prior to the new season, cotton prices in Maharashtra increase
Ahead of the start of the new cotton season, cotton prices have risen by about 3 per cent in the last 15 days. Currently, the available stock of cotton in the country has decreased, and cotton cultivation has also decreased by about 10 per cent. Along with this, crops have been damaged by rain in Gujarat and Maharashtra, due to which the market is seeing improvement.
The new cotton season in India starts in October, while the arrival of cotton in the northern states starts from September itself, as cotton cultivation starts earlier there. Usually before the new season, cotton prices remain high during the off-season, but prices start softening before the new goods come to the market, as the supply increases.
This year, however, the market witnessed a decline during the off-season due to several reasons. Cotton prices in the international market reached the lowest level in the last four years, which also put pressure on the domestic market. But, cotton prices in India remained stable compared to the international market, which ranged between Rs 6,800 and Rs 7,300. The main reason for this was the low supply in the country, which kept the prices stable.
There was constant pressure in the cotton market for the last three months, raising concerns about the new season. Usually, prices rise in the off-season, but this year prices fell, creating uncertainty in the market. However, cotton prices have improved in the last two weeks due to three major reasons, giving a positive start to the season.
Low cotton stock
The country currently has low cotton stock. Production was low last season, while consumption by domestic industries increased and exports are also estimated to be around 28 lakh bales. It is estimated that only 20 lakh bales of cotton will remain in the new season this year. If the arrival of new cotton is delayed due to rain, the shortage of cotton may increase further
Reduction in cultivation
Cotton cultivation has decreased by about 10 percent compared to last year. There has been a significant reduction in cultivation in northern states like Punjab, Haryana and Rajasthan. Apart from this, cotton acreage has also decreased in Gujarat and Maharashtra. Last season, cotton was cultivated in 122 lakh hectares in the country, which has come down to 111 lakh hectares this year. The decline in cultivation will reduce production, which has supported the prices.
Heavy rains
In recent days, many important cotton producing areas of Gujarat and Maharashtra have received heavy rains, causing damage to the crop. The same situation is in some parts of Madhya Pradesh. The market has already been affected due to low sowing and crop damage. Apart from this, good rains are also expected in September, which may affect the cotton crop. Due to all these reasons, prices are seeing improvement in the market.
