Gujarat Floods: Major Cotton Producing District Alarmed!

MUMBAI(Commoditiescontrol): Heavy rains in Gujarat since July 11 lashed the entire region which raised concern of possible crop damage amid waterlogged cotton fields.

Since June 1, Gujarat recorded a cumulative rainfall of 560mm(22 inches) which was largely excess and above normal levels of 340mm(13.4 inches). Nearly 50 percent of the total state suffered massive damage with various cotton sowing belts waterlogged which instilled fear of possible crop damage.

Amongst the affected districts, Surendranagar, Morbi, Amreli, and Rajkot were the major producing districts for the current season, covering nearly 46 percent at 12.01 lakh ha from the total area at 25.85 lakh ha, as per the latest sowing report.

Official assessment could not be conducted until water recedes from the sowing belts. According to District officials, assessment may likely commence from next week onwards.

There were various speculations over the possible outcome were as follows:

*Speculation of 30 percent damage from the total sown area as on date.
*If damage is inflicted then re-sowing probabilities were below 20 percent
*Castor seed would likely replace the cotton area.

Speculations is tilting the market sentiment to a more bullish side. However, we do not recommend jumping on the bullish bandwagon just yet and wait until the official assessment is released.

We have analyzed the market from the speculations perspective however we will keep you updated as more information is collated from the officials. (Full Report)



(By Commoditiescontrol Bureau; +91-22-40015534)