India’s cotton June futures rise on reduced cultivation

Prices of Cotton June Futures rose 2.5 percent to 17,900 rupees on news that farmers in North India had substantially reduced the area under cultivation owing to heavy losses last year.

Data suggests that cotton acreage in Punjab is down to 320,000 hectares versus 540,000 hectares last year. Similarly, Haryana’s acreage is likely to be 20 percent lower to 485,800 hectares.

Adding to the uptick in prices is the Telagana state’s government asking farmers to cut down on cultivating cotton as producers fail to get profitable prices for their produce.

Prices of cotton seed oilcake also showed an upward trajectory. Overall, India’s cotton acreage was 17.73 lakh hectares in 2015-16.

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