Agri Picks Report October 22, 2024: Geojit Financial Services

commodities

Geojit Financial Services's report on Daily Agri Picks

The Cotton Association of India has estimated the country's cotton production in 2024-25 (Oct-Sept) at 30.2 million bales (1 bale = 170 kg), down 7.1% on year. The committee, however, said there could be a variation of 5% in the cotton pressings and balance sheet numbers on account of an unpredictable monsoon pattern and other factors influencing the crop, according to the release. Cotton production in the north zone, which comprises Punjab, Haryana, and Rajasthan, is pegged at 3.6 million bales in the 2024-25 (Oct-Sept) season. Output in the central zone, which includes Gujarat, Maharashtra, and Madhya Pradesh, is seen at 18.9 million bales in 2024-25 against 20.0 million bales the previous year, according to the Cotton Association of India. Production in the south zone comprising Telangana, Andhra Pradesh, Karnataka, and Tamil Nadu is seen at 7.2 million bales against 7.4 million bales during the previous season, and other states will account for the rest of the output. The association has estimated domestic demand in 2024-25 at 31.3 million bales, the same as the previous year. It has pegged exports at 1.8 million bales, against the previous estimate of 2.85 million bales. The cotton body sees 2024-25 closing stock at 2.64 million bales against 3.02 million bales a year ago.The opening stock for the season starting October is estimated at 3.02 million bales against 2.89 million bales a year ago, the association said. The total supply of cotton till the end of the cotton season 2024-25 is estimated at 35.7 mln bales, against 37.2 million bales in the previous season. The association has estimated imports in 2024-25 at 2.5 million bales, up from 1.75 million bales from its previous estimate. Production of groundnut in Gujarat is likely to rise nearly 26% on year to 4.2 million tonnes in 2024-25 (Jul-Jun) even as the acreage under the crop has risen just 0.2% to 1.91 million hectares, according to crop survey by the Solvent Extractors' Association of India. Gujarat is the top producer of the commodity in the country. The significant rise in production will largely be on account of an increased productivity, rising to 2,210 kilogram per hectare from 2,045 kilogram per hectare last year, it said. Across India, groundnut Kharif acreage was reported across nearly 4.9 million hectares as on Sept. 27, compared with 4.37 million hectares last year at the same time, the report said. Owing to scattered showers in certain districts of Gujarat, crops that were sown early have been damaged. During the past three days, several parts of Saurashtra have received heavy showers which may further damage the crop that has been harvested and lying in the field and this is likely to delay the arrivals, according to the report. The mandi prices of good quality groundnut are currently quoted at INR 6,250 per 100 kg, down from the minimum selling price of INR 6,783 per 100 kg. Additionally, soybean acreage in Gujarat increased to 308,000 hectares from 267,000 hectares last year. Farmers' interest in soybean crop has been growing due to low input cost, less labour-dependence and higher mechanisation during harvesting. In view of this, soybean area has also been expanding year on year in Gujarat, the report said.

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23102024 - co