Atul Ganatra, President, Cotton Association of India and Mahesh Sharda, President, International Cotton Agency expound on the current market scenario for cotton in India
Much of the cotton currently available in our country has been damaged due to the recent rains. Therefore, we would have to wait for another 15 days to know the correct cotton prices. Currently, cotton prices are quite low as the available cotton is of low quality and has a moisture content of 25 percent to 50 percent.
Extended monsoon is the spoiling the quality of our cotton. We normally require cotton of 75 to 78 RD but have to contend with 72 RD cotton. We cannot ignore the weather conditions this month. The next ten days will be extremely crucial for the crop.
Though cotton is produced on a much larger scale globally, USDA recently reduced its production by 4 per cent. Earlier, the association produced 22 million bales. Now, it produces only 20.8 million bales as most of its buyers are adopting a wait and watch policy.
India will continue to be the world’s top cotton producer as consumption will continue to rise. The current low prices will also boost consumption.
