The Textiles Ministry has lowered the country’s cotton production estimates further to 30.5 million bales (from earlier forecast of 32.9 million bales) for the 2010-11 season as unseasonal rains in December 2010 have affected the crop output, leading to lower arrival in mandis.
Farmers are bringing lesser quantity of cotton into mandis because untimely rains in December 2010 in states like Gujarat, Maharashtra and Andhra Pradesh have brought down crop yields. Presently, the daily arrival of the natural fibre into mandis has declined by 55 per cent to 26,470 bales, as against 58,823 bales in the same period last year.
According to the Textile Ministry data, the total cotton arrival is about 28.7 million bales so far in the current season. However, domestic prices have started cooling off in line with global trend due to sluggish demand.
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