According to an Indian Cotton Federation (ICF) report for the fortnight ended May 15, as per trade sources, approximately 3.45 crore cotton bales have been pressed till now.
ICF said it expects in states like Gujarat and Maharashtra, farmers may shift from cotton to pulses and groundnut as they find cotton farming unviable due to untimely rains and lower than MSP prices.
Again quoting market sources, the report added that CCI has marketed 12 lakh bales through auction out of their stock of 86 lakh bales, which also includes 4.5 lakh bales of the Maharashtra Cotton Federation.
Cotton prices were on steady tone with an average demand from local mills. Since cotton is available price parity may be maintained subject to the smooth release of reserve stock by CCI and Federations.
Due to lack of export demand and also slow domestic off-take, ICF quoting market experts said the carry over stock may double from the last season’s end stock.
Nearly 25 per cent cotton sowing has been completed in North zone, of which in Punjab, it is just around 5 per cent, while in Rajasthan, sowing has just started and in Haryana around 40 per cent sowing has been completed.
