Cotton producers in Gujarat and Maharashtra are worried lot due to severe floods in both the states in Gujarat especially, a series of towns are under the water including key textile-producing Surat causing production losses of around 10-15 per cent. But it could increase to even as high as 25% if the rains continue.
Terming the situation as alarming, East India Cotton Association stated that the exact losses likely to be assessed only after the rains cease and the flood situation improves.
According to the Cotton Textile Export Promotion Council, the loss in cotton production was around 10% in South Gujarat, which has been most affected by the floods. It estimates the losses to be around one to two lakh bales in both Gujarat and Maharashtra.
The estimated cotton production this year is 275 lakh bales in Maharashtra and Gujarat is estimated to produce 100 lakh bales in 2007.
Heavy monsoon rains in India likely to push up prices to higher levels as buyers are anticipating a lower output than estimated for coming campaign 2006-2007. First arrivals from the new crop are expected from mid-October.
Prices has already climbed on the East India Cotton Exchange (EICE) where V-797 surged Rs 600 per candy, Karnataka Jaydhar was up Rs300 and Shankar 6 increased another Rs 100, finally up Rs 200 in the past two weeks.