As per the Gujarat Cotton Ginners’ Association (GCGA), a reduction in area under cotton cultivation is expected to bring down cotton production in Gujarat this year. Cotton output in the state is estimated to be around 85-90 lakh bales in 2020-21as compared to 95 lakh bales in 2019-20.
Cotton production in Gujarat also includes production of raw cotton. Gujarat ginners procure raw cotton from other states like Maharashtra and such raw cotton is then ginned and pressed within the state. According to a pan-India trade body member, the flow of cotton from other states may also be low this year due to cotton procurement by CCI at minimum support price (MSP).
However, few believe Gujarat’s production may reach 95 lakh bales given the improvement in yield this year when compared with last year. Meanwhile, the price of benchmark Shankar-6 cotton variety has increased to Rs 40,000 per candy mainly due to good demand from exporters and textile as well as spinning mills.
Prices had dropped to Rs 32,000 per candy in April-June following the lockdown. Currently, around 22,000 bales are arriving in the local markets of Gujarat.