Cotton Market Watch
COTTON MARKET REPORT 28-02-2012
Exchange Rate:- as on 27-02-2012
|1 US $ = Rs.49.04||UK £ = Rs.77.77||Euro = Rs.65.89||100 YEN = Rs.60.54|
North India :Cotton market open on weak note and during the day price drop by about 20/- to 50/- per maund. Demand has been slow from mills also who were not keen on purchases at current level. Moderate buying has been noticed from the mills and spinners at lower levels. Main buyers: JPT, Vardhaman, Nahar, VPL, Eastern, DP, Tayal, LD, DCM, Rajshree, Rathi, Sadhu Ram Sat Pal, Satia, KCT etc.
Gujarat: Gujarat market undertone easy, still most of the buyers adopted wait & watch policy due to downtrend, few buyers like Bhadresh, Jalaram Cotton and Local ginners (Exporters) purchased in range of Rs. 34200 to 34300/- levels, K.P. mill passing traded in range of Rs. 34500/- levels and average quality quoted Rs. 33800 to 34000/- levels, little lower arrivals reported in Gujarat marketing yards due to lower kapas rates. V–797 Rates: 25000 Old Crop, 26500 New Crop, Near About 40000 bales arrivals in Gujarat.
Maharashtra & Madhya Pradesh:
Maharashtra/Madhya Pradesh : Cotton market opens around previous levels closing & demand continues to be slow from the mills and spinners who are not much active in the market at currant levels. Exporters and mills buying has slowed down and most of the buyers expect the prices to move lower before making purchases.
Andhra Pradesh/Karnataka:Cotton market ruled very quite on lack of trading. Both buyers and sellers were waiting for clear direction about movement of cotton prices. Trading was reported to be thin as buyers were hesitant to make purchases at current levels.
CCI rates as on 27/2/2012: H-4 34200/35000,BB34600/35800, J-34 33400/34700.
India has made rapid strides in cotton production ever since adopting the genetically modified technology 10 years ago. It has also helped the country emerge as a key supplier of the natural fibre to the global market, especially China.
However, the large-scale adoption of genetically modified technology is causing concern to other nations, especially in Europe. This, in turn, could begin to hurt exports of other agricultural products exports, especially ones that are organic and non-genetically modified.
According to available statistics, India exported about 300 organic products fetching Rs 1,960 crore in 2011. In contrast, it shipped out 66 lakh bales (170 kg each) of cotton earning over Rs 15,500 crore. This year, it is projected to export 80 lakh bales and it could end up earning foreign exchange of about Rs 14,000 crore.
Of the nearly 12 million hectares brought under cotton this year, nearly 95 per cent grew Bt cotton.
The Agricultural and Processed Food Products Export Development Authority (Apeda) has fixed a target of touching Rs 5,000 crore in organic products exports by 2015.
We in Europe, particularly Germany, are worried over the spread of genetically modified organisms (GMOs) in India. Your Government has to deal with that immediately, said Mr Ulrich Walter of Ulrich Walter GmbH, Germany. Mr Walter's company is one of the largest importers of organic Darjeeling tea. It is also importing coffee and spices from Kerala, mainly Peeramedu, and holy basil (tulsi) from Uttar Pradesh.
He made these remarks at a session on tea at BioFach 2012 that was held here last week.cannot coexist'
Europeans want to consume products with a clear conscience. Therefore, there is increasing awareness on organic and fair-price products, said Mr Walter.
He told Business Line later that genetically modified and conventionally produced crops cannot coexist. They may be kept at a distance but still there could be pollution of conventional and organic crop through wind and pollen, he said, adding that people in Germany were particularly concerned over the strides made by India in Bt cotton.
According to Apeda, 4.84 million hectares are under organic farming in India and 75 per cent of this is grown in the wild. Again, only 16 per cent of organic products produced in the country is exported.
Among products treated as non-GMOs, soyameal accounts for a major share in exports. Indian organic products are primarily exported by Europe, the US, Canada and Japan. In Europe, Germany and Switzerland are the main buyers.
Mr Gerald A. Herrmann of Organic Services Germany GmbH said that organic products' exports from India were increasing by 33 per cent every year and most products were being marketed as being free from pesticides.
However, at the recent World Spice Congress at Pune in India one of the speakers pointed out that India topped in cases of pesticide residues being higher than permitted limits, he said.
Mr Herman Lanting, an agronomist, said that it was increasingly becoming difficult to find non-Bt cotton in India. India has begun to lose some great traditional varieties such as DCH-32, he said.
According to Ms Simone Seisl of Remei AG, Switzerland, her firm that sources organic cotton for retailing is finding it difficult as farmers were switching over to Bt varieties. Though some want to get back, it is a big task to get them going again, particularly due to the switch over, she said.
However, Mr Mukesh Gupta of Morarka Organics Foods said that Bt cotton is not posing danger since it was grown in irrigated areas. Organic products are mainly grown in rain-fed areas and there need not be any fear of GMOs getting mixed, he told an interactive session at BioFach.
Every buyer, particularly in Europe, wants a face to any product that he or she buys. They are just not satisfied with buying organic products. What more is their question. In these circumstances, GMOs and mere non-GMO products could put Indian exports under pressure, said a global consultant who did not wish to be identified.