Pune: MCX cotton deposits in the current season till date, increased by 285% in December 2020 as against December 2019, a release from the exchange said.
“On 31st December 2020 cotton deposit was 80,250 bales and on 31st December was 20,825 bales,” said MCX. The curru cotton season began on October 1.
“Average daily turnover increased from Rs 61.26 crore in the month of December 2019 to 61.58 crore in December 2020. Moreover, the cotton stocks eligible for delivery at warehouses hit a nine year (since 2011) high at 80,250 bales in December 2020, it is up by 285% compared with 20825 bales in December 2019. The open interest stood at 4236 lots or 105900 bales at the end of December 2020, up compared with 3868 lots or 96700 bales from December 2019, the exchange said in a statement,” a release from MCX said.
The basis delivery centre for MCX Cotton contract is Rajkot (Gujarat) with additional delivery centres at Kadi, and Mundra (Gujarat), Yavatmal and Jalna (Maharashtra) and Adilabad and Warangal (Telangana).
India is the largest producer of cotton in the world, accounting for about 26% of the global production. The major cotton producing states are Gujarat, Maharashtra, Telangana, Rajasthan, Karnataka, Haryana, Madhya Pradesh, Andhra Pradesh, Punjab etc.
India has been a major exporter of cotton since 2005–06, and currently, the world’s third largest exporter after USA and Brazil. “It is estimated that India had exported 54 lakh bales of cotton in 2020-21 as compared to 50 lakh bales in 2019-20. India is the second largest consumers of cotton after China with market share of about 21% in the world,” the release read.
According to Cotton Association of India (CAI), India’s estimated production is 358.50 lakh bales in 2020–21 crop year as compared with 360 lakh bales in 2019-20. Estimated consumption (including non-mill consumption) is 330 lakh bales compared with 250 lakh bales. Imports estimates is 14 lakh bales compared with 15.50 lakh bales. Closing stocks estimated is 113.50 lakh bales compared with 107.50 lakh bales.