Heavy rains in several parts of India, including cotton growing states of Gujarat and Maharashtra, have raised doubt about the timely arrival of the crop to the market, media reported.
In the country, the cotton marketing season begins on October 1 annually. So far, traders and buyers are hopeful of timely arrival as the rains have provided the much-needed moisture for growth.
Normally, the rainy season ends by mid-September, but weather forecasts indicate rain in the coming weeks too.
Initially, the late and heavy rains were not a cause of worry as farmers were relieved after several days of high temperatures.
A broker from Mumbai said that there was a high temperature for many days, so moisture was much needed for the crop to grow in the Maharashtra region.
Hence, the recent rains provided respite to cotton crops in developing states.
Gujarat-based trader Chetan Bhojani told the media that there was the hope of timely arrival of cotton despite rains in Gujarat.
“But if the rain continues as forecasts indicate, cotton arrival may delay,” he added.
He said that cotton prices are bearish as there was hope for timely arrival. If the arrival delays, however, cotton prices may see an upside trend.
So, the next two weeks are very crucial from the weather’s point of view.
The two states of Maharashtra and Gujarat will decide the price direction of cotton in the country.
According to the latest weekly sowing report of the Union ministry of agriculture, cotton sowing area was 25.45 lakh hectares in Gujarat and 42.29 lakh ha in Maharashtra with a share of 53.6% in total cotton sowing of 125.69 lakh ha.