The advancing monsoon in South India marks the start of cotton sowing.
As chilli prices weaken, the natural fibre crop may gain in Telangana, says trade.
A firm trend in cottonseed prices is supporting cotton prices as sowing for the kharif 2024 season begins in the southern states of Karnataka, Telangana, and Andhra Pradesh, which have started receiving monsoon rains. The trade expects cotton acreage to rise in Telangana, where some chilli farmers may shift to cotton due to weak chilli prices.
“The cotton-growing areas in Karnataka and Telangana have received a couple of spells of rain, which is a positive sign for the crop,” said Ramanuj Das Boob, a sourcing agent for multinationals and domestic buyers in Raichur. The expectation is that there will be an increase in area in Telangana as cotton prices are ruling firm ahead of the planting season, while chilli prices are not that great and may prompt farmers to go for cotton, Boob said.
The monsoon, which began in the last week of May, has advanced, covering most of Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, most parts of Telangana, and parts of Maharashtra.
Inhibiting Factors
“All the major cotton-producing states such as Telangana, Andhra Pradesh, and Karnataka have received good rainfall, and seed purchases have picked up in the past couple of days,” said Baya Reddy, agri-inputs sales leader at BigHaat, an online marketplace for agri-inputs. The purchase progress of cottonseeds ranges between 35% and 50% in these states, and planting may have taken place in about a tenth of the targeted areas. Reddy noted that cotton acreages are likely to decrease in a few areas such as Kurnool and parts of Telangana due to crop shifts that vary from market to market.
In North India, where cotton planting begins early from mid-April, acreages are likely to drop by about a fourth due to factors such as increased pest infestation in recent years and rising labor costs.
Kapas Prices Remain Firm
Boob mentioned that raw cotton, or kapas, prices are ruling firm and ranging around ₹7,500-7,600 per quintal, above the minimum support price (MSP) levels in parts of Karnataka and Telangana. An increase in demand for cottonseeds for crushing is keeping prices firm, even as market arrivals of raw cotton have dwindled. In Karnataka, the daily market arrivals of cotton are around 2,000 bales, while in Maharashtra, it is around 15,000-20,000 bales. Boob said the cottonseed prices are ruling between ₹3,300 and ₹3,500 per quintal, up from around ₹2,800-3,000 about a month ago.
READ MORE :> Increase in Kharif Cotton Cultivation Expected in Adilabad District
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