Don’t miss the latest developments in business and finance.

Heavy rains to wreak havoc on Gujarat cotton

Image
Crisil Marketwire Mumbai/ Ahmedabad
Last Updated : Feb 06 2013 | 5:51 AM IST
Standing cotton crops of long staple (28 mm), Shanker 6 variety may get affected due to heavy rains that lashed many parts of Gujarat on intervening nights of Wednesday and today, traders said.
 
"Heavy rainfall may affect Shanker 6 variety of standing cotton crop ready for delivery, especially in the Radhanpur belt of north Gujarat," said Mitesh Shah of Ahmedabad-based Kanam Cotton Brokers.
 
According to Shah, if the cloudy situation persists for another three days, it may result in heavy damage to the crops. "The Shanker 6 variety (Bt cotton) is normally expected by September 30, but looking at the prevailing weather conditions it may get further delayed," Shah said.
 
This monsoon, Gujarat had an overstretched period of clouding and rains for nearly a month but the situation has improved in the last 10 days. "But again there is a probability of a cloudy atmosphere for next few days." Shah said.
 
On Thursday, due to prevailing weather conditions, spot cotton also opened high fearing damage to standing crops. Long staple cotton (28 mm, Shanker 6-Gondal) opened up at Rs 19,600 a candy (356 kg), up Rs 100 from Wednesday in Ahmedabad spot market.
 
Prices for medium staple cotton (22 mm, V 797 Kalyan-Radhanpur) also opened firm at Rs 14,000 a candy, up Rs 100.
 
"Prices of spot cotton have gone up due to strong sentiment that bad weather conditions and forecast of heavy rains in Gujarat may impact cotton crop negatively," said Sachin Soni, a trader based in north Gujarat town of Harij.
 
Many places in Surendranagar district, known for growing Kalyan V 797 variety medium staple cotton (22 mm), also received heavy rainfall.
 
"But it will not have a negative impact as the crop delivery will take some time," a trader said.
 
The fear of the traders is supported by the Ahmedabad office of the Indian Meteorological Department (IMD) that has given a forecast of heavy to very heavy rainfall at isolated places in Gujarat in the next 24 hours.
 
"Many parts of north Gujarat, central Gujarat, down south, and Surendranagar has received heavy rainfall on Wednesday night and it is expected that very heavy rainfall is likely to occur at some places in Gujarat in the next 24 hours," Bharat Shah, assistant meteorologist, IMD-Ahmedabad, said.
 
Gujarat is expecting an output of 1 billion cotton bales (170 kg) as a result of an increase in total acreage area to 2.4 million hectare, but heavy rainfall and floods in the state has time and gain clouded the estimates.

 
 

Also Read

First Published: Sep 08 2006 | 12:00 AM IST

Next Story