V- 797 Kapas
V-797 is grown in the saurashtraregion of Gujarat, India. It is a 6 month long crop with a 1 month sowingwindow, around July last- Mid August. Thus the arrival of the crop is typicallyseen during January. The crop is very much immune to pest. The seed extractedfrom such variety lacks in oil content and instead of crushing, it is useddirectly for cattle feed. Typically raw cotton contains 40% Fiber and 60% seedby weight. Raw cotton is measured and stored in units of maunds (20 kg) bageach.
Kapas refers to the unginnedfibrous substance extracted from the cotton plant (cotton boll), which coversthe underlying seed. V-797 is the fine grade short staple (22-24 mm) variety ofcotton, with a micronaire of 4.5-5.9. V-797 is an Indigenous hybrid variety ofcotton with an annual production of about 4-8 lakh bales in India. Fiber isused for manufacturing of coarse material or used in mixing with medium staplecotton.
Kapas V-797 is majorly used inmixing with the medium staple cotton, so it has its specific use in the market.Textile industry will always be in demand for this variety of kapas due to itsspecific nature.
Factors influencing prices
Productionof other varieties of cotton, production and pricing of better variety ofcotton has a great impact on the planned production of V-797.
Exportand domestic demand of cotton, global production demand has a directcorrelation to the pricing of cotton irrespective of the variety.
Monsoonplays most crucial factor in the production of cotton.
Directprocurement by the government agencies and storage in warehouses.
Pricesof Cotton seed oil cake and lint price.
V-797 Kapas Futures
Given that kapas haveconsiderable price volatility and that the export demand has increased betweenyears. Exchange traded Kapas V-797 futures are ideal for price risk managementneeds of the Ginners, Spinners. Speculators can take directional view on futureprices and accordingly take positions in Kapas V-797 futures.
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