Spot traders and analysts have raised questions about the possible damage to cotton crop and quality of its supplies in Andhra Pradesh. The state has received heavy rains in the last few days and is expected to receive more rainfall in the next 24 hours. Traders lament heavy rains in the area will spoil the quality of the crop and disrupt harvesting operations. Supplies from the new harvest have started coming into local markets in small quantities and are expected to gain pace in the coming weeks, spot traders say.

The Cotton Association of India (CAI), in its third crop estimate, forecast a 7 per cent rise in output to 38.1 million bales of 170 kg each in the year starting October 2013. The state-run Cotton Advisory Board is expected to meet to forecast production and exports for the 2013/14 season, according to industry officials. 

“Cotton is expected to trade range-bound to firm this week because of a short-term supply crunch. The November contract may rise to Rs 20,300 to Rs 20,400 this week," say Prerana Desai, VP-Research, Kotak Commodities.