JAIPUR (Commoditiescontrol) - Cotton seed oilcake prices may rise in the near future because of lower availability of cotton seed and better demand from buyers. Cotton seed cake prices are expected to gain Rs 200 per quintal due to good demand. Cotton seed cake is used as cattle feed and it is considered to be a healthy fodder for milk producing animals.
Dilip Patel, President of All Gujarat Ginners Association said that cotton crop may decline this year. According to Patel, cotton production is estimated at 370-380 lakh bales (170 kg in each bale) in current season which is 50 lakh bales higher over last year. Availability of cotton seed is limited due to lower production of cotton. Seed is stocked by large stockists in a big way. Cotton Corporation of India (CCI) has already disposed off it’s stock so it has no cotton seed with itself. Cotton seed cake prices have slumped in the last six months. This means, the commodity is moving on a actual demand.
There are two-more factors that would push cotton seed cake prices up in the near term. First, the prediction of weak monsoon in the next season. Second, acreage of green fodder has reduced in Gujarat this year. Till 21st April, the acreage was 2.52 lakh hectare in Gujarat, which is lower to 3 lakh ha during same period of last year. This shows that green fodder acreage declined 19 per cent in Gujarat. Mr Patel told that cotton seed cake was traded at Rs 1,160-1,170 per 60 kg in Kadi. Prices can rise Rs 126 per 60 kg in recent days.
Moolchand Gill from Jai Bajrang Ginning and Pressing, Bodvad told that cotton seed prices rise 5-10 per cent every year. Last year it was sold at Rs 2,300 per quintal. This year, cotton seed should reach Rs 2,400-2,500 per qintal. There may be a panic like situation in the market if monsoon arrives on time but there will be strong trade. He told that buying of cotton seed was better from cake producers but lower availability also pushed up it’s prices. Normally, it’s prices remain weak in May but cotton Fartad (cotton from last picking) production was very low this year. Hence, total output was lower and prices rose in this month itself. Mr Gill opined that cotton seed cake may touch as high as Rs 2,400 per quintal this year. Milk prices also increased this year so farmers are less likely to complain about price and, hence, would prefer cotton seed cake to feed milk producing animals.
Trilok Chand Narsee from Veerchand Narsee Pvt Ltd Malkapur said that there is no substitute for cotton seed cake – a preferred feed for milk producing animal. Stockists, who have piled up cotton seed, do not want to sell. As such, the supply will be limited. He informed about his ability to cater for only 20-30 per cent of demand. He foresees less possibility of price fall in cotton seed cake.
Cotton seed meal for ready delivery (Jalgoan line) was traded at Rs 1,930-1,965 per quintal. It was sold at Rs 1,160-1,170 per 60 kg in Kadi (Gujarat). Cotton seed May delivery contract settled at Rs 1,900 and June contract at Rs 1,896 per quintal at NCDEX on Monday. The exchange holds stock of 40,731 tonnes as on 10 May in it’s affiliated warehouses.
(By Commoditiescontrol Bureau; +91-22-61391533)