Punjab cotton prices rise on weather woes
Continuous rain in north India is forcing Punjab farmers to harvest cotton crop earlier than usual period.
By Madhvi Sally, ET Bureau |
CHANDIGARH: Continuous rain in north India is forcing Punjab farmers to harvest cotton crop earlier than usual period. It could also push up raw material costs for textile makers and exporters if it hurts standing crop in the region.
“Over 25 quintal of cotton arrived in the Abohar mandi in Ferozepur district of Punjab. The farmer got Rs 3,500 per quintal. If the weather remains favourable, cotton arrivals will pick up,” said Bathinda-based North India Cotton Association president Rakesh Rathi.
He added that the previous year farmers were getting Rs 2,900-Rs 2,950 per quintal for J-34 variety in the beginning of the season. Most of the crop is either in the ball formation stage or in the flowering stage in the northern region. Punjab Agriculture University’s plant breeding section head MS Gill said that infestation of whitefly on cotton has been observed in the cotton belt of Punjab.
Ginned cotton in north was selling for Rs 3,400-Rs 3,500 per maund (one maund = 37.32 kg). Gujarat’s Shankar-6 (28 mm) variety was ruling at Rs 33,400 to Rs 34,000 per candy.
“There is aggressive purchase by exporters in the spot and forward market,” said a Coimbatore-based trader Narendra Dave. He added that over 3,500 bales of Shankar-4 variety at spot market were purchased by exporters for Rs 34,000 per candy.
With the Centre allowing cotton exports from October 1, Cotton Association of India president Dhiren Sheth said that the farmers will get a better price. “The crop is looking good and with the much-needed rains, the yield is expected to increase,” he said.
The increase in cotton prices over the past one year is a matter of concern for most of the textile mills and yarn manufacturers. Ludhiana-based Nahar Group, which consumes 10 lakh bales annually, has only a month’s cotton stock since its last purchase was in March this year.
“In August 2009, the Shankar 6 was selling for Rs 28,000 per candy whereas it is ruling now at Rs 34,000 per candy. We don’t expect prices to fall with international merchants making huge purchases,” said Nahar Group general manager Ashok Kapoor.
“Over 25 quintal of cotton arrived in the Abohar mandi in Ferozepur district of Punjab. The farmer got Rs 3,500 per quintal. If the weather remains favourable, cotton arrivals will pick up,” said Bathinda-based North India Cotton Association president Rakesh Rathi.
He added that the previous year farmers were getting Rs 2,900-Rs 2,950 per quintal for J-34 variety in the beginning of the season. Most of the crop is either in the ball formation stage or in the flowering stage in the northern region. Punjab Agriculture University’s plant breeding section head MS Gill said that infestation of whitefly on cotton has been observed in the cotton belt of Punjab.
Ginned cotton in north was selling for Rs 3,400-Rs 3,500 per maund (one maund = 37.32 kg). Gujarat’s Shankar-6 (28 mm) variety was ruling at Rs 33,400 to Rs 34,000 per candy.
“There is aggressive purchase by exporters in the spot and forward market,” said a Coimbatore-based trader Narendra Dave. He added that over 3,500 bales of Shankar-4 variety at spot market were purchased by exporters for Rs 34,000 per candy.
With the Centre allowing cotton exports from October 1, Cotton Association of India president Dhiren Sheth said that the farmers will get a better price. “The crop is looking good and with the much-needed rains, the yield is expected to increase,” he said.
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The increase in cotton prices over the past one year is a matter of concern for most of the textile mills and yarn manufacturers. Ludhiana-based Nahar Group, which consumes 10 lakh bales annually, has only a month’s cotton stock since its last purchase was in March this year.
“In August 2009, the Shankar 6 was selling for Rs 28,000 per candy whereas it is ruling now at Rs 34,000 per candy. We don’t expect prices to fall with international merchants making huge purchases,” said Nahar Group general manager Ashok Kapoor.
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