Heavy rains cast doubt on timely arrival of cotton in India

Normally, rainy season ends by mid-September, but weather forecasts indicate rain in the coming weeks too. Initially, the late and heavy rains was not a cause of worry as farmers were relieved after several days of high temperatures. A broker from Mumbai said that there was high temperature for many days, so moisture was much needed for the crop to grow in the Maharashtra region. Hence, the recent rains provided respite to cotton crop at developing state.

Gujarat based trader Chetan Bhojani told Fibre2Fashion, “There was hope of timely arrival of cotton despite rains in Gujarat. But if the rain continues as forecasts indicate, cotton arrival may delay.” He said that cotton prices are bearish as there was hope for timely arrival. If the arrival delays, however, cotton prices may see upside trend. So, the next two weeks are very crucial from weather point of view.

The two states of Maharashtra and Gujarat will decide the price direction of cotton in the country. According to the latest weekly sowing report of Union ministry of agriculture, cotton sowing area was 25.45 lakh hectares in Gujarat, and 42.29 lakh ha in Maharashtra. Both states’ share was 53.6 per cent in total cotton sowing of 125.69 lakh ha. These states contribute around 50 per cent cotton in total India’s production. Therefore, crop conditions and arrival in Gujarat and Maharashtra will give direction to the Indian market.

Fibre2Fashion News Desk (KUL)