Source: Business Standard

 

Prices have been stable in India since the international high in 2011, given the comfortable stock positions. For this year 2013-14, good rains have led to increase in sowing - till August 2, sowing had crossed three per cent of the normal area for the whole kharif season. While output can be expected to be high on indications from sowing, the heavy rains in Maharashtra, the second biggest producer of cotton, have cast a question on output and quality this year. Despite generally stable prices this year with a small uptrend in international prices since January, there have been spikes in India - a spurt in prices in April was attributed to strategic stockpiling by agencies and traders, and the recent spurt this month has been attributed to the relaxation of the limits on cotton exports in early August for the current season; spinning mills are, therefore concerned over the possibility of higher prices this year.

IPM data till week ending August 10, 2013. The Indicus Price Monitor (IPM), a product of Indicus Analytics Pvt Ltd, tracks real-time wholesale prices for 60 agricultural products from more than 3,000 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.