The prices of cotton are likely to fall further in Indian market as cotton sowing has already crossed the 10-million-hectare mark in the current kharif season.
Experts feel that in the wake of increased acreage under cotton cultivation, further correction in prices is expected.
Earlier this year, the prices of cotton went up to Rs. 110,000 per candy (1 candy = 356 kg), while currently the prices are hovering around Rs. 80,000-85,000 per candy. Prices may go down to below Rs. 60,000 per candy by October in case of a bumper crop.
As per media reports, sowing continues till the second week of August in Maharashtra, Gujarat, Punjab, Karnataka, Haryana, Rajasthan, Madhya Pradesh, Andhra Pradesh, Telangana and Tamil Nadu.
Atul Ganatra, President of the Cotton Association of India, says that at least 10 per cent higher sowing is expected compared to previous kharif season’s 12 million hectare.
Although the acreage of cotton exceeds targets in Maharashtra every year, production is higher due to better yield per hectare.
Avdhesh Sejpal, President, All India Cotton, Cotton Seeds and Cotton Cake Brokers Association, said farmers are shifting to cotton as they are anticipating better return compared to other monsoon crops.
