India cotton output expects to rise by 20 percent on good rain
According to estimates by cotton ginners in Maharashtra, India’s 2019-20 cotton production may is expected to increase by 20 percent over the previous year on good rainfall. As per the sources, the base price of cotton is expected to touch Rs 40,000 per candy (of 365 kg each). The estimate was put forward at the annual Mahacot conference in Jalgaon held recently. As per the Arvind Jain, VP, Khandesh Ginning Pressing Association, cotton production is likely to increase to 375 lakh bales in 2019-20 (cotton year starts from October 1), against 312 lakh bales in the current year. Cotton prices in India are currently higher than global rates. The industry expects domestic prices to remain firm till December as new crop arrivals have taken time due to late sowing and continuing rainfall, which delays harvesting. Moreover, cotton seed prices are firm due to supply shortages caused by a smaller crop in the previous year, which aided cotton prices. Cotton Corporation of India (CCI) is prepared to buy 10 million bales (of 170 kg each) if cotton prices fall below the minimum support price (MSP).