Source: Business Standard
The 2012-13 output in India would be the third successive year of high production; the Cotton Advisory Board recently revised its estimate upwards from 32 million bales to 33 million bales, though this will be lower than the previous year’s record production of 35.2 million bales. Given the comfortable supply position, prices are not expected to rise much this year. However, there has been high domestic demand. This year, textile mills are set to take in more than 26 million bales compared with 24 million bales used last year. The spurt in prices seen in April has been attributed to strategic stockpiling by agencies and traders. As stocks are released, cotton prices should stabilise in the country. In fact, globally, cotton supplies have exceeded demand and stockpiles are rising. The International Cotton Advisory expects farmers to shift out of cotton in China, the US and India, to lower output and keep prices from falling substantially in the next season.
IPM data till week ending April 27. The Indicus Price Monitor, a product of Indicus Analytics Pvt Ltd, tracks real-time wholesale prices for 60 agricultural products from more than 3000 mandis across the country. Due to differences in methodology, the actual levels of the IPM differ from the corresponding wholesale price index (WPI). However, broad trends are in sync.