Indian Cotton Company officials revealed that because cotton farmers are worried that the epidemic in Europe and the United States will make it difficult for seed cotton prices to continue to rise, cotton farmers have recently accelerated the pace of sales, and the volume of new cotton on the market has continued to increase. At present, the domestic seed cotton price in India is 6,000 rupees/quintal, and the MSP price is 5,825 rupees/quintal.
According to predictions by senior CCI officials, due to the very fast arrival of new cotton on the market, it is expected that the new cotton in 2020/21 may end in March 2021. So far, CCI has purchased a total of 6.7 million bales of new cotton with a total value of 190.49 billion rupees, almost double the same period last year.
In addition, this year’s new Indian cotton with a staple length of 30 mm also has quality problems, and these cotton farmers are eager to sell. This year’s delayed rainfall and excessive rainfall have brought serious pest problems to crops in major producing areas such as Telangana and Maharashtra.
Normally, cotton farmers will dry the new cotton and sell it slowly after January every year, because the price at the beginning of the year is better. However, this year’s daily market volume of new cotton has now reached 300,000-325,000. bales, the cumulative market volume has reached 14 million bales, of which Telangana has the largest purchase volume, with 483,000 cotton farmers selling a total of 2.186 million bales to CCI. A total of 205,000 cotton farmers in Maharashtra sold 1.099 million bales, and a total of 38,000 cotton farmers in Gujarat sold 192,000 bales. A total of 1.266 million cotton farmers sold 6.51 million bales to CCI, with a total value of 190.5 billion. rupee.
Although CCI’s MSP acquisition has been carried out across India, CCI officials believe that the final acquisition volume is unlikely to exceed 10-12 million bales. The initial forecast acquisition volume was 20 million bales because of Actual output dropped significantly. The current production forecast is just under 35 million bales, down from the previous forecast of 38 million bales. Currently, domestic cotton prices in India are still strong. The Cotton Advisory Committee of India (CAI) maintains this year’s production forecast at 35.6 million bales and predicts cotton exports to decrease by 10% to 5.4 million bales, lower than the previous forecast of 6 million bales. </p
