Coimbatore : In view of the panic and unnecessary increase in cotton prices, Indian Cotton Federation (ICF) here Wednesday requested the Cotton Advisory Board (CAB) to immediately convene its meeting so that a clear picture of the cotton crop will be known.

With CAB estimating the cotton crop for 2018 -19 season (October-September) at 361 lakh bales, the official estimate of the crop based on the current situation will help to avoid speculative reports of lower cotton crop by different agencies, ICF President, J Thulasidharan said here.

Cotton arrivals are supportive but with a higher price tag due to increase in MSP and cotton crop volume predictions of a lower size by the speculators and other marketing agencies.

Pointing out that the CAB in its last meeting on November 22, 2018 had estimated the crop at 361 lakh bales, he said that recent developments like drought in many cotton producing states and increased price demand by cotton farmers despite higher MSP had created a very low crop situation.

This artificial panic and unnecessary increase in cotton prices was affecting the already struggling textile and clothing trade and their exports, he pointed out.

To overcome this artificially created market condition, ICF requested CAB to immediately convene the Second Meeting of the Cotton Advisory Committee so that a clear picture will emerge, as official estimate of the crop based on the current situation will help to avoid such speculative reports of lower cotton crop by different agencies.

It is the right time to re-assess the crop situation, as the season is already midway, Thulasidharan said.