Indian Govt Sets MSP for Cotton, Ginning Mills on Strike
31 October 2023, Mumbai
The Indian government has set the minimum support price (MSP) for long-staple cotton at Rs 7,020 per quintal and for medium-staple cotton at Rs 6,620 per quintal. However, ginning mills in Punjab have gone on an indefinite strike, protesting against the state government's notices for the recovery of pending tax liabilities related to a 1% cess on agricultural produce during the years 2010 to 2014.
Vietnam, the world's sixth-largest fibre exporter and third-largest exporter of textiles and garments, is also threatening the global supply of cotton due to unusually dry weather. This raises the specter of prolonged food price inflation.
Outlines
Meanwhile, Cottoncandy experienced a decline of -0.54% to settle at Rs 58,700 due to profit booking, following a rise triggered by the USDA's October WASDE report.
North Zone:
Cotton traded on an easy tone across major spot markets in north India on Tuesday. Prices were quoted up Rs 40–50 per maund compared to yesterday evening. New crop cotton traded at ready delivery at Rs 5,650–725 per maund in Punjab, Rs 5,625–5,675 per maund in Haryana, and Rs 5,475–5,650 per maund in Upper Rajasthan.
Central Zone:
Cotton spot prices were also easy across west India markets on Tuesday. Sankar-6, new crop 29 mm (RD-75 & MIC-3.8), traded at Rs 57,500–58,000 per candy in Gujarat and Rs 57,000–57,500 per candy for 28.5mm (RD-74). V-797 traded at Rs 46,500-47,000 per candy (12–15% trash condition) for ready delivery. In Maharashtra, new crop good grade cotton (29mm) was quoted at Rs 57,500–58,000 per candy.
South Zone:
Cotton spot prices were easy across the major trading centers of south India.
Overall, the cotton market is witnessing a subdued tone due to various factors, including the ginning mill strike in Punjab, the threat to global supply from Vietnam, and profit booking in Cottoncandy.
CREDITS: Cotton Market Bulletin
