Cotton growers set to reap rich harvest
Cotton prices are expected to remain stable in the near future with the current trend in domestic and export consumption, according to Ashok D Daga, president of Coimbatore Cotton Association.
By TNN |
COIMBATORE: Cotton prices are expected to remain stable in the near future with the current trend in domestic and export consumption, according to Ashok D Daga, president of Coimbatore Cotton Association.
Addressing the association’s AGM, he said that enquiries and some commitments for cotton exports have already begun. “The crop scenario for 2007-2008 is progressing very good. Cotton sowing in Punjab, Haryana and Rajasthan was over and preliminary estimates showed that the area under cotton cultivation had gone up by 7% in Punjab and by 25% in Rajasthan.
In the south, sowing was completed in about 90% of the area under cotton cultivation in Andhra Pradesh,” he said.
In other cotton growing states like Gujarat, Maharashtra and Madhya Pradesh, sowing was reported to be completed and the area under cotton was expected to increase by 5-8 % in these three states.
Higher production, improvement in yield and increasing quality awareness among farmers, trade and the industry were some of the bullish factors for the cotton sector this year. Due to these reasons, better price realisation was expected. “The advent of Bt cotton has helped farmers not only in yield but also in value terms,” he added.
Mr Daga said that with a growing domestic economy and better retail exposure, textile production was going up in the country, thus increasing the demand for cotton. Cotton consumption in the country was around 168 lakh bales in 2002-2003 and it was nearly 240 lakh bales in 2006-2007. “Due to the increasing spindleage and thus an encouraging demand for cotton, this year we are sitting on a very low stock-to-use ratio of only 44 lakh bales. This, according to our consumption pattern is only two months cotton in hand, he added.”
Addressing the association’s AGM, he said that enquiries and some commitments for cotton exports have already begun. “The crop scenario for 2007-2008 is progressing very good. Cotton sowing in Punjab, Haryana and Rajasthan was over and preliminary estimates showed that the area under cotton cultivation had gone up by 7% in Punjab and by 25% in Rajasthan.
In the south, sowing was completed in about 90% of the area under cotton cultivation in Andhra Pradesh,” he said.
In other cotton growing states like Gujarat, Maharashtra and Madhya Pradesh, sowing was reported to be completed and the area under cotton was expected to increase by 5-8 % in these three states.
Higher production, improvement in yield and increasing quality awareness among farmers, trade and the industry were some of the bullish factors for the cotton sector this year. Due to these reasons, better price realisation was expected. “The advent of Bt cotton has helped farmers not only in yield but also in value terms,” he added.
Mr Daga said that with a growing domestic economy and better retail exposure, textile production was going up in the country, thus increasing the demand for cotton. Cotton consumption in the country was around 168 lakh bales in 2002-2003 and it was nearly 240 lakh bales in 2006-2007. “Due to the increasing spindleage and thus an encouraging demand for cotton, this year we are sitting on a very low stock-to-use ratio of only 44 lakh bales. This, according to our consumption pattern is only two months cotton in hand, he added.”
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