Increased confusion in the textile sector amid disagreements over crop-supply estimates at Rs

India's rupee exports are likely to fall to a 19-year low

Saurashtra Cotton Washed prices witnessed a rapid retreat due to the fear of impact on exports from the country due to falling prices in the world market.

Estimates of the country's production of Rs. In the wake of these estimates cotton washed prices fell rapidly in Saurashtra markets and cottonseed oil prices were recently under pressure in the edible oil markets. In the Saurashtra markets, the price of washed cotton was seen falling rapidly and trading at the head of Rs.900 in a short period. In the Mumbai oilseeds market recently, the price of cottonseed oil fell to around Rs. 980-985 per 10 kg after Saurashtra. Meanwhile, the Committee on Cotton Production and Construction (CCPC), formed by the government and representing various constituents of the textile sector besides cotton farmers, has forecast a 14-year low in the cotton crop in the current 2022-23 season in the country after the Cotton Corporation of India said. In the current season, the wool crop is likely to reach 337 lakh 23 thousand bales in the country. One bale costs Rs 170 kg. The area under Rs cultivation in the country is estimated to be 130 to 131 lakh hectares this year and the average production per hectare was estimated to be around 439 to 440 kg. Before this, according to the Cotton Association of India, the possibility of cotton crop coming in the country this year of 303 lakh bales was shown recently. Thus, there is confusion among the market players when there is a difference of opinion in the estimates about the rupee crop-supply. The new seasonality of the rupee in India has started from October 2022 and will end in the month of September 2023. At the beginning of the new season, the cash crop in the country was estimated by CAI at 344 lakh bales, after which it continued to decline and recently it was shown at 303 lakh bales, which has increased the discussion in the cash market.

Recently, according to the sources of Spinners Association of Gujarat, in the period of November to March, the income of new rupees in the country has increased more than the previous year and farmers have more cash stock of rupees on hand. There is also talk in the market that farmers are holding stocks and bringing less rupees in the market in the hope of getting higher prices of rupees. According to CAI, 30 percent of the cash has remained with the farmers. Last year, cotton harvesting was done up to the fourth and fifth stages and compared to this, in the current season, the quantity of cotton in the third, fourth and fifth stages of harvesting is less in the market and in the harvesting of the two stages in December, the farmers got special and early harvest prices for new cotton, said CAI. Sources said. According to the sources of Cotton Association of India CAI recently, the rupee price is likely to be Rs.75 thousand per quintal. These sources showed the possibility of such prices by mid-2023. The possibility of more imports instead of exports in Rs has also been shown! These sources were showing the fear of decrease in rupee income in the markets from May and thereafter the market prices would go up. The possibility of price increase to Rs.70 to 75 thousand has been shown.

Meanwhile, global markets have recently seen the rupee fall to trade at a four-month low. Due to this, the export of rupees has been affected. The market experts were showing the calculation that rupee export from the country will be around 12 lakh bales by the month of March. There has been an increase in demand from spinning mills in the country. Production capacity utilization by spinning mills has increased. However, there have also been signs of overcrowding in cotton yarn markets in South India recently. Prices of 60 carded weft yarn in Mumbai markets have appeared under pressure recently. Meanwhile, there has been a setback in economic exports to the US and Europe. According to the US Department of Agriculture USDA, India's rupee export to the world market is likely to fall to a 19-year low in the current season. Some sections of India are also showing the possibility of Rs exports of around 40 lakh bales this year. Prices in the world market have come down recently and the export balance has fallen by around 15 percent. Some sections are showing fear of impact on exports due to such steps.