Gujarat's crops wilt under heavy rains

A heavy downpour in Saurashtra in the past few days is set to damage Gujarat's major crops "� cotton, groundnut and sesame. The prices of these crops are expected to rise following reports of lower harvest this year.

Many farms in Junagadh district are flooded and there are reports of landslides across Saurashtra, a major hub of cotton and groundnut.

Cotton traders have pulled down the crop estimate to 1.1 crore bales (170 kg each) from an earlier record estimate of 1.3 crore bales, with Junagadh district, especially Veraval taluk, reeling under the monsoon fury.

"Heavy showers have damaged the cotton crop in Junagadh, especially in and around villages of Veraval and Rajkot such as Gondal, Jamjodhpur and Kalawad, causing 10 to 20 per cent damage," said Mayur Bhindora, a Rajkot-based cotton trader and broker at Samir Brokerage.

Cotton prices were ruling around Rs 20,500 per 350 kg and they might increase by Rs 500 in the next few days, owing to bad weather and the resultant crop damage, added Bhindora.

Around 23 lakh hectares in the state, with 14 lakh hectares of Bt cotton, 5 lakh hectares of staple and the rest accounting for local varieties, are under cotton cultivation.

The recent spell of rains has also caused a minor damage to groundnut, the second largest crop in the state. "According to initial reports, damage is estimated at around 5 per cent. However, if the rains do not stop and cloudy weather continues for more days, the damage can be worse as this is the time when seeds start sprouting," said Bipin Patel, a Junagadh-based oil miller and groundnut trader.

The groundnut and oil prices might firm up by 5 to 7 per cent following the crop damage and a rising festive demand for groundnut oil. But, prices would take a dip by mid-September as oil millers and traders would start clearing their stocks to gear up for the new crop, said Patel.

Groundnut oil is selling around Rs 780 per 10 kg and groundnut prices are quoted around Rs 11, 300 per 400 kg.

The rains have also taken a toll on sesame, the region's third major crop. "The sesame crop has been damaged in Jamnagar, Surendranagar and Bhavnagar. It is a highly weather-sensitive crop. But the impact on prices is hard to predict, with reports of a good crop in Uttar Pradesh and Madhya Pradesh. The damage in Saurashtra may be offset by strong arrivals from the northern states," said Monik Vora, a Rajkot-based sesame trader and commodities broker.

Prices might initially rise from the current Rs 800 per 20 kg to Rs 850-900 for a few days. But the inflows from Madhya Pradesh and Uttar Pradesh might cool down the market, said Dharmesh Patel, managing director of Geo Freshorganic, a manufacturer and exporter of sesame seeds and products.

He added that the state's sesame acreage had almost shrunk by half to 2 lakh hectares from the last year's 3.5 lakh hectares.