new Delhi: Trade war between the US and China The effect of this is seen in the whole world. Because of this war, many other economies have also been affected along with the two countries. Let us say that in the last one year cotton prices in the international market are more than 32 per cent broken. The decline in cotton prices in the international market is an environment of uneasiness in the Indian cotton market. In Indian futures market, cotton prices have declined by 16 per cent compared to last year. Dilip Patel of King Exports Pvt Ltd said that due to the decline in cotton in the international market, further prices will also be broken in the Indian market, as the situation at present is less likely to improve.
Explain, India is the world's largest cotton producing country. Cotton is the most consumed in China and America is the largest exporter of cotton, while India is the second largest exporter. Gujarat, Andhra Pradesh, Madhya Pradesh and Karnataka are the states producing the most cotton in the country. When Prime Minister Narendra Modi used to be the Chief Minister of Gujarat, he gave a lot of encouragement to farmers who cultivated cotton. The government has gone ahead in doubling the income of the farmers till 2022. There is a lot of profit in cotton cultivation. That's why training is also being given to the farmers. Industry Association Cotton Association of India (CAI) has announced to spend 1.25 crore rupees on the training of cotton growers over the next five years.
Arun Sheikh Sarkaria, director of Mumbai-based DD Cotton Private Limited, said that business tension between the US and China has had a significant impact on the cotton market. The reason is that most of the consumption of cotton is in China and America is the largest exporter of cotton. Cotton market has affected the world due to confrontation between two big business partners. India is the world's largest cotton producing country.
During the last trading session, the contract for the current month of Cotton on the country's largest futures market Multi Commodity Exchange (MCX) closed at Rs 20,060 per trunk (170 kg), down by Rs 510, or 2.48 per cent, against the previous session. . On August 2 last year, cotton prices at MCX were Rs 23,990 per lump. Thus, in the last one year, cotton prices have declined by Rs 3,930 per lath i.e. 16.38 per cent.
Outstanding stocks of last year, 33 lakh tonnes
According to information received from market sources, the price of benchmark cotton Gujarat Shankar -6 (29 mm) was Rs 42,000-42,300 per candy (356 kg) this week, during the same month last year, the country's Shankar-6 variety cotton was Rs 46,700 Only per candy was above. On the Intercontinental Exchange (ICE), Cotton's December contract fell by 2.95 cents, or 4.73 percent, to 59.42 cents per pound. Cotton prices were 88.17 cents per pound on ICE last August last year. Thus, in the last one year, ICE has dropped 32.62 per cent in cotton prices. According to the Cotton Association of India estimates, cotton production in the country during cotton season 2018-19 (October-September) is 312 lakh bales while consumption is estimated to be 315 lakh bales. The outstanding stock of last year was 3.3 million tonnes and imports accounted for about 14.5 lakh bales.
Area of â€‹â€‹cotton has increased 5.35 lakh hectares more than last year
The association had said in its estimate released in July that in the season ending September 30, the total supply of cotton in the country could be 376 lakh bales, including 33 lakh bales of outstanding stock, 312 lakh bales and 31 lakh bales of imports. However, market analysts say that the import can fall. The association had released estimates of export of 46 lakh bales of cotton from the country in the current season. According to the data released by the Central Agriculture and Farmer Welfare Ministry this week, the area under cotton in the country has been higher this season compared to the previous season. The area under cotton has reached 5.35 lakh hectare more than last year. Farmers had sown cotton in 109.79 lakh hectares so far last year, while this year, 115.15 lakh hectares of cotton has been harvested.
Shivraj Khaitan of Salasar Balaji Agro Tech said that if cotton market continues to fall like this, then the next season, Cotton Corporation of India (CCI) will have to buy more cotton from the farmers at MSP. For the forthcoming season, the minimum support price (MSP) for cotton has been fixed at Rs 5,255 per quintal for medium fiber cotton and Rs 5,550 per quintal for long fiber cotton.