Guntur: While Cotton Corporation of India fixed a Minimum Support Price for cotton at Rs 4,320 per quintal during this season, cotton is being sold at Rs 5,400 per quintal in the open market due to increase in demand for cotton in the domestic and international market. If the demand continues, cotton price is expected to increase further and touch Rs 5,700 in the coming few months. According to agriculture marketing department, the farmers in the State cultivated cotton in 6 lakh hectares in the State as they secured good price during the last season.
However, due to delay in rains and pink bollworm attack on the crop, the farmers got lesser yield this year. Every year they get a yield of 15 quintals per acre. But this year they secured only 10 quintals per acre. Though cotton cultivated area increased, production did not increase to that extent. Similarly, due to pink bollworm attack, the cotton yield went down in Telangana, Punjab and Haryana States also. This increased the demand for cotton in the market.
As the demand for cotton is going up, the traders and exporters started purchasing cotton at a higher price. Cotton was sold during the last season at Rs 5,000 per quintal but now it is being sold at Rs 5,400 per quintal. An official in the Agriculture Marketing Department T Bhaskar Reddy said,” The farmers are selling cotton in the open market to get a better price. The CCI opened counters in the State to extend helping hand to the farmers.
Delay in rains and pink bollworm attack are reasons for fall in production and increase in demand for cotton in the domestic market.” Andhra Pradesh Spinning Mills Yarn wing president Pachala Chalapati Rao said, “Nation-wide during the last season we have produced 345 lakh bales while during this season the Cotton Advisory Board expecting production of 377 lakh bales.”
(Source: THE HANS INDIA)