MUMBAI (commodity Online): India’s cotton prices may fall in fiscal 2012-13, as the opening stock for the 2012-13 Cotton Year is expected to be huge on account of record production and present export restrictions.
India’s total cotton production for 2011-12 is expected to be around 35 million bales (1 bale = 170 kg) and consumption is expected to be around 26 million bales in 2012-13. And the world cotton production is pegged at 26.96 million tons in 2011-12, higher than the global consumption of 23.13 million tons.
The price of the commodity is also affected by the suspension of registration processes.
According to Agricultural Ministry, India still has potential to export another 2-2.5 million bales of cotton if fresh registrations are allowed.
This is likely to lower the price realisation of the commodity in the domestic market as a result acreage under cotton crop may go down in 2012-13 as farmers may tune in to other profitable crops.
In Inter-Continental Exchange (ICE), the cotton for May delivery traded down 0.10 cents to 91.98 cents on 13th April.
And in India’s National Commodity and Derivatives Exchange (NCDEX), the commodity traded down 0.31% to Rs 791.5 per Kg on 16th April at 10:45 IST.