Cotton set for a good harvest
The Hindu Business Line|November 04,2019
India is expected to produce at least 10-15 per cent more than last year
Prerna Sharma Singh
Cotton set for a good harvest

Cotton has been a consistent performer in the domestic market for the past couple of years in contrast to the global markets. 2019 has not been an exception.

It has found support on decade-low output expectations in the 2018-19 season and a strong export demand following the US-China tension.

However, the fibre has been on a patchy ride since May on extremely bearish global cues (bumper crops in Brazil and the US), and domestically, on forecast of a record harvest, sluggish exports and cheaper imports.

Going forward, cotton prices can find support and trade firm on account of delayed arrivals, depleting stocks, concerns over crop quality, procurement support from the Centre and expectations of improved buying from China.

Cotton statistics

Relatively higher prices in 2018-19, hikes in support prices and delayed monsoon have influenced farmers to increase the acreage under this weather-resilient crop.

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