It is believed by the industry experts that prices of cotton could slump below MSP (minimum fixed price) as fixed by the government post harvesting on account of likely good production in the Brazil and the US (major producers after China and India) whereas India’s exports have cooled on seasonal factors.
Government may take important measures specially in state like Haryana and Maharashtra to ensure that farmers will get MSP.
Indian cotton prices have declined by more than 3% in July, because of cheap imports and sluggish yarn export to China. Sluggish demand for cotton can also be the reason for price decline.
As far as new production is concerned, crop is in good condition except for Maharashtra but harvest may get delayed in some regions due to delay onset and revival on monsoon.
In Maharashtra nightmare is back for cotton growers, where cotton flowers have been found infected by pink bollworm in some farms. About 5% of the farms is found to be infected as reported by private farms surveyors, creates a warning situation. Farmers are suggested to take all the necessary preventive measures to protect further damage.