New cotton crop enters north India; weak outlook spurs early harvest.

Arrivals of the new crop of cotton have begun in Punjab and Haryana almost 10-15 days earlier this year. Arrivals are mainly from Palwal district in Haryana and Mathura in Uttar Pradesh, with average daily supply of the fibre at 700-800 bales of 170 kg. Normally, country’s harvesting of cotton starts in the later half of August and enters the market in early September. This year, however, harvest was slightly advanced to cash in on high prices currently in spot markets amid low stock. Lower stocks with north Indian mills and expectations of a fall in prices ahead in the wake of higher output forecasts might have encouraged farmer to harvest early.