Cotton Seed Industry Saddled Owing To Downfall of Cotton Prices
Date : December 21, 2012
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In the upcoming season the downfall in the demand of cotton may affect the demand for cottonseed and further affecting the Indian cotton exporters
The predictions of the Industry experts suggest a descending flow in the seed sales in the upcoming year if the present situation persists in the cotton sales season. The industry is predicting a flattish uptake from farmers next year, if the cotton prices improve to Rs 5,000 a quintal.
The seed industry is saddled unlike in the past, with huge inventories this time. The carry-over stock is put at two crore packets (of 450 gm each) as against the probable demand of four crore packets next year. The supposed production for this seed production season is pegged at 3.5 crore-4 crore.
Andhra Pradesh, a major contributor to the seed production, has validated some strain in the rabi season (the seed production season for major crops) because of the Nilam cyclone in the sowing season.The drought-like conditions and lack of power too lead to the farmers suffering.
According to the experts of the industry the cottonseed belt of Mahboobnagar district was adversely impacted this season which is affiliated to the CPI(M). Andhra Pradesh is a cricial contributor to the seed industry with a total production of 40.50 lakh quintals of seed last year. Though paddy and groundnut had lion’s share of 15.20 lakh and 12.66 lakh quintals, the production of cottonseed doubled last year from 22,000 quintals to 41,200 quintals. The hopes of farmers were dashed following series of dry spells and the clone in the kharif. As a result, the yields and production came down significantly.
The market prices for cotton too are not encouraging, forcing them to sell the commodity below the minimum support price in some mandis. Industry experts suggest If the situation remains the same in the next few months, the prospects would not be very promising for the seed industry next season
The drop in acreage in the North was attributed to the sudden spurt in the interest in guar.