India’s Cotton Picking to Rise Due to Higher Prices, says USDA

According to the on India’s cotton and products for 2021-22, the country’s cotton picking would be higher as prices of the fiber firm up.

Despite the fact that October rains in certain regions of the nation have disrupted arrivals, there is a possibility of greater picking as farmers seek higher yields from the crop. 

The United States Department of Agriculture's (USDA) Foreign Agricultural Service (FAS) in Mumbai has predicted India's cotton output for the season at 28 million bales, which works out to about 359 lakh bales (each of 170 kg). The output estimates are consistent with the Cotton Association of India's (CAI) prediction of 360.13 lakh bales of cotton crop — an increase of 7 lakh bales from the 353 lakh bales estimated for 2020-21.

 High Prices 

"Due to high farm-gate seed cotton prices, the number of pickings will likely be higher as farmers expect better price realization," it noted in its report released on December 7. 

According to the USDA report, farm-gate prices for the Shankar-6 variety in Gujarat have climbed by 31% since October. Cotton ginned-processed costs are presently quoted at Rs.64900 per candy (each of 356 kg) compared to Rs.57000 at the beginning of October. 

"Cotton picking continues in Central and South India, where farmers are being instructed to drain excess water from the standing crop and monitor for bollworm and sucking pest infestation," the report stated, adding that rains in parts of North and Central India also delayed the harvest. 

Projection of Output 

The Union government projected cotton output for the year at 362.19 lakh bales in its first advance estimate for the kharif crops, released in September this year — almost 10 lakh bales higher than the 353.84 lakh bales reported last year. Later on November 12, the Committee on Cotton Production and Consumption (COCPC) released its cotton estimates for the marketing year 2021/22, anticipating a flat production of 362 lakh bales. 

Cotton inflows are estimated to be about 53.3 lakh bales as on November 25.

Current crop arrivals account for 14.7% of total expected output for the marketing year 2021/22. Arrivals during the same period last year were 22% higher. 

According to the USDA report, the pace of arrivals is projected to rise up in the coming weeks as the weather improves and the harvest accelerates.