The decision to defer cotton export registration by one month – from October 1 to November 1 – may help the textile companies in the short term because of sufficient availability, but there are concerns on how long that would last.
Arrivals of cotton are uncertain across India with farmers apprehensive about the yield due to inclement weather. The early varieties of cotton from Punjab and Haryana have also been affected by leaf curl virus and tobacco caterpillar.
According to sources in the Punjab Agriculture University in Ludhiana, cotton yield is estimated to be 1-1.5 quintal per acre, against 2-3 quintal in ideal conditions. Cotton crop is not harvested but is picked three to four times a year. However, the sources said the yield may improve during future picking if the weather remains dry.
Pest was reported in 25 per cent of the area under cotton. Farmers who procure spurious Bt seed from Gujarat are more susceptible to this virus. Insufficient sunlight and high moisture content coupled with loss of balls are likely to affect productivity.
In Mahrashtra and Andhra Pradesh the situation is uncertain, said K N Viswanathan of South India Cotton Association. He said the South West Monsoon has withdrawn but the North East monsoon is round the corner and excessive rains can damage the crop.
Andhra Pradesh and Mahrastra are expected to contribute 1.17 crore bales to the total projections of 3.25 crore bales. Punjab and Haryana are expected to contribute 20,00,000 bales. Crop estimates for Gujarat – 98,00,000 bales – may be affected due to extended rain in coastal Saurashtra.
Prices of cotton touched Rs 37,000 per candy (1 candy = 356 kilogram) and registered an increase of Rs 500 in a single day following the decision to extend registration dates for cotton export by one month.
According to members of Confederation of Indian Textile industry (CITI), the industry has sought an extension of cotton exports registration to Januray 1.