Gold Silver Reports – ✅ Cotton prices have jumped 6-7% in a week, as the trade is speculating a big fall in output due to pink bollworm attacks in some states, even though there is little clarity yet on the extent of the damage.
“Cotton prices have increased by ₹250-300 per quintal last week. From our earlier estimate of 400 lakh bales, the trade expects production to fall to 340 lakh bales,” said Pradip Jain, president of the Jalgaon Ginning and Pressing Association. Concerns about crop quality have also impacted prices. “Of late, instances of rejections of cotton bales by buyers have increased,” said Jain.
Various government and trade bodies have undertaken surveys to reassess the crop. A Maharashtra government official, who did not want to be named, said the fall in yields could be 15-20%.
Textile commissioner Kavita Gupta said: “Maharashtra has been somewhat more impacted by bollworm. Telangana has also got impacted, while Gujarat has been minimally impacted. Some states like Gujarat have declared bonus above MSP, which will help the farmers.”
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The Cotton Association of India had pegged India’s 2017-18 cotton production at 375 lakh bales (each 170 kg). Cotton bolls are plucked multiple times and about 70% of the crop has already been harvested.
Losses due to pink bollworm were higher during the first pickings. However, now the research agencies have noticed an improvement in quality. Blaise D’souza, head of crop production at the Central Institute of Cotton Research in Nagpur, said: “Timely action taken by farmers by spraying pesticides has improved the condition and the next pickings may be of good quality.”
