Stability in cotton but possibility of some increase in cottonseed oil

29-Jul-2024 08:38 PM

Rajkot. During the current marketing season (October-September) of 2023-24, the domestic production and average yield rate of cotton were somewhat better than expected and the textile industry continued to get a good supply of cotton.

After being in the grip of a lot of fluctuations for the last few years, the market price of cotton remained largely stable this time and there is no possibility of any significant change in it for the next three-four months. But due to strong demand of the festive season, the price of cottonseed oil (cotton seed oil) may rise by Rs 5-6 per liter.

According to industry analysts, there are indications of a decline in the sowing area of ​​cotton during the current year, due to which there may be a possibility of reduction in cotton production in the next marketing season despite the price.

According to the latest data of the Union Agriculture Ministry, the production area of ​​cotton at the all India level could reach only 103.73 lakh hectares by 26 July 2024, which is about 8 lakh hectares less than the sowing area of ​​113.54 lakh hectares in the same period last year.

According to industry analysts, this time the area under cotton has decreased significantly due to more emphasis on the cultivation of groundnut, maize, moong and other high-value crops by farmers in states like Gujarat, Punjab, Haryana and Rajasthan.

Cotton crop often suffers heavy losses due to pests like pink bollworm and white fly, which increases the difficulties of farmers.

Due to the health benefits of rice bran oil and its regular availability, its demand and popularity is increasing among consumers.

This is also encouraging farmers to increase rice production. The demand for traditional edible oils like cotton seed oil and rice bran oil remains strong during the festive season. However, the price of other edible oils remains stable within a certain limit.