Indications that farmers are in the mood to increase cotton cultivation due to high cotton prices

- About 20 lakh bales in Rs 8 lakh market in 8 months: 2 to 3 lakh bales likely to remain in balance

The country has seen changing equations in the field of cotton production in recent years. Prior to this, the annual production in the country did not increase much before the Bt cotton era, which increased to 200 lakh bales at one stage after the Bt cotton era. However, there has been a sharp decline in production since then. According to the latest figures released recently, the country's cotton production in the 2020-21 season is estimated at 3 lakh bales by the Cotton Association of India. Given this estimate of 20 lakh bales earlier, the recently released crop estimate is less than four lakh bales. According to sources, crop estimates in Gujarat and Telangana are now slightly lower than before and as a result, the country's cotton crop estimates are slightly lower than before. Meanwhile, market experts have recently pointed out that the total area under cotton cultivation in the country is likely to increase by about 8 to 10 per cent during the kharif season due to higher cotton prices to farmers in the current market season from October 2020 to September 2021. With the Cotton Corporation of India hoping for a reassurance, optimism of the monsoon as well as rising costs in groundnut cultivation, there are indications that farmers are now turning more to cotton cultivation. Meanwhile, sources in the Telangana Cotton Millers and Traders Welfare Association said that the cotton crop in Telangana is now estimated to be about three lakh bales less than earlier. On the one hand, the estimate of nationwide production of cotton has been reduced, while on the other hand, the possibility of increasing cotton consumption in the country has been shown by the CAI. Earlier, it was estimated that the country would consume 215 lakh bales of cotton in the current season of 2020-21. But recently this estimate has been increased to about one million bales. Now it is estimated that such consumption will be 3 lakh bales. The lockdown situation has eased and the demand for cotton yarn has increased, sources said, adding that the country's cotton consumption estimate has now been increased.

The market price of cotton, which was hovering around Rs 30,800 per kg in November last year, has been bouncing since then and recently traded at a high of Rs 30,200. With cotton prices soaring, farmers are now in the mood to increase cotton cultivation. In the country Gujarat, Maharashtra, Madhya Pradesh, Telangana, Karnataka etc. Experts are showing the possibility of increasing the area under cultivation for new cotton crop in the states.

According to experts in the field of spinning mills, the area under cotton is likely to increase by about 10 per cent to 1.5 million hectares. In the current season of 2020-21, the market price of cotton has increased by an average of 15 to 7 per cent. Cotton support price Kiev. With the market price as high as Rs 2,000 against the Rs 715 per quintal, the attraction of farmers for cotton cultivation has increased. The support price of cotton has been increased to Rs. Apart from cotton, prices of cottonseed have also gone up. Cottonseed prices recently touched a high of Rs 500 to Rs 2,000 per kg. The Cotton Corporation has procured about 12 lakh bales of cotton this season. Meanwhile, cotton exports from the country are expected to increase by about 3 to 4 lakh bales in the 2020-21 season. Sources say that it would not be a surprise if exports increase to 3 lakh bales. By the end of May this year, overseas cotton exports from the country have reached about 3 lakh bales and experts are hoping that this figure will increase to more than 20 lakh bales. However, while cotton exports are on the rise, the country is expected to import about one million bales of cotton this year, sources said.

Meanwhile, in the eight-month period from the end of May to the end of May in the new season, which started in October 2020, the country's total revenue from new cotton has reached about 20 to 21 lakh bales, market insiders said. If we take into account the various estimates and figures of cotton crop, production, domestic demand, exports as well as imports etc., the current rupee season of 2020-21, when it ends at the end of September 2021, is expected to remain unsold at around 3 to 4 lakh bales Showing market sources. Thus, on the one hand, in the hope of increasing the area under cultivation for the next crop, on the other hand, the next new season of 2021-24, which will start in early October, is expected to be as high as 3 to 4 lakh bales at the beginning of the season. Significant growth is also expected at this stage. Corona infestation in the country as well as in various countries of the world has recently started to subside and in the world of trade and industry, it is hoped that the cycles will be revived as per the norms. Ronak is expected to return to various commodity markets at this stage.