Sugarcane, soybean, cotton may survive

INCESSANT RAINS SEND SHIVERS DOWN MARKET SPINE

The current heavy spell of rains may not have a significant impact on Maharashtra's sugarcane, soybean and cotton crops, industry analysts and traders told today.

"Sugarcane is a water intensive crop and very heavy rains are not likely to have any impact on it," Amol Tilak, research analyst, Kotak Commodities said.

Maharashtra is India's second-largest sugar producer, after Uttar Pradesh, and likely to have a bumper sugarcane crop of 67 mln tn this season (Oct-Sep).

Tilak said, the cane would be affected only if the water remains continuously 2.5-3.0 feet above ground, which is not the case now.

As far as the soybean crop is concerned, prospects are very bright, as Madhya Pradesh, which accounts for around 65 per cent of the country's output, is receiving good rains, an analyst said.

The state has increased acreage under soybean by 250,000 hectares to 4.4 mln hectares this year.

"If waterlogging continues for 3-4 days more in Nanded, Latur,Sangli and Kolhapur (in Maharashtra), the major soybean growing areas, only then crop may get affected," said Kunal Kothari from trading firm Samarth Commodities.

The flood situation will also not have a major impact on Maharashtra's cotton crop, which accounts for nearly 30 per cent of the country's output, Kothari said.

Further, even though the situation in Gujarat, the top cotton producer, is grim, it is premature to comment on the possible loss in cotton output, Tilak said.