Agri Picks Report April 04, 2024: Geojit

Geojit's report on Daily Agri Picks

The area under summer crops in Maharashtra rose 6% on year to 334,562 ha as of Monday, according to data published by the state agriculture department. During the same period last year, summer crop acreage across the state was 314,635 ha. The average acreage for the five years from 2016-17 to 2020-21 for summer crops is 349,759 ha, the data showed. The total area under cereals rose to 250,755 ha from 236,492 ha a year ago. The acreage under rice, the second major summer crop, was at 156,208 ha, down from 161,897 ha a year ago. The state's five-year average acreage for rice is 83,011 ha. The area under maize rose to 41,099 ha from 40,659 ha a year ago. The area under pulses was at 6,085 ha, down from 6,447 ha a year ago. The area under moong rose to 4,918 ha on year from 4,781 ha, the data showed. Maharashtra is the third-largest producer of moong. The area under other pulses fell to 698 ha from 1,362 ha a year ago. Acreage under oilseeds rose to 77,723 ha from 71,696 ha a year ago, according to the data. Groundnut, the major summer crop, was sown across 58,794 ha, up from 47,050 ha a year ago. The five-year average acreage for the crop is 90,605 ha, the data showed. Soybean acreage plunged to 3,602 ha from 16,193 ha a year ago. As of Tuesday, the water level in the state's dams was 37.01% of the capacity, compared with 45.74% a year ago, according to data from the state water resources department. Of the 3.28 mln bales of cotton procured in the ongoing season beginning in October, The Cotton Corp of India has sold 457,000 bales, or 14%, as of Tuesday, according to the agency data. The government's nodal procurement agency wound up its procurement in the first week of March as domestic prices rose tracking higher international prices, an official said. One bale is equal to 170 kg. Cotton Corp procures kapas, or seed cotton, when rates fall below the minimum support price to safeguard farmers from distress sales. For the 2023-24 (Oct-Sep) season, the Centre has set the minimum support price for medium staple cotton at 6,620 rupees per 100 kg and long staple at 7,020 rupees per 100 kg. Currently, in northern India, kapas prices range from 6,600-7,750 rupees per 100 kg. The procured seed cotton is processed into lint or cotton bales through ginning and is auctioned to the textile industry. The corporation holds auctions from Monday to Friday and endeavours to liquidate stocks before the commencement of the next season on Oct 1. Since February, the corporation sells cotton bales only to spinning mills through the auctions. Previously, traders and exporters were also permitted in auctions. Apart from extending support to farmers by buying cotton at minimum support price, the corporation also acts as a dependable supplier to the textile industry. As prices turned volatile, spinning mills had requestedCotton Corp in February to sell cotton only to the textile industry. Average cotton prices of Shankar-6 variety in Gujarat were 59,350-61,600 rupees per candy (1 candy = 356 kg). In Maharashtra, the 29-30 mm variety was 60,450-61,850 rupees per candy, according to Global Cotton Advisory. Cotton is a kharif crop sown in Apr-Jul and harvested from Aug-Sep. The total cotton supply in 2023-24 (Oct-Sep) is seen at 39.6 mln bales, with production estimated at 32.3 mln bales, imports at 1.2 mln bales, and opening stock at 6.1 mln bales, according to the Committee on Cotton Production and Consumption. On the demand side, consumption by mills is seen at 30.1 mln bales and non-mill consumption at 1.6 mln bales. Exports are projected at 2.7 mln bales.

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