By Niraj Chinchkhede | 26 Oct 2021
The Vidarbha region that has earned the tag of the ‘farmer suicide capital’ and where the farmers were often seen failing to recover even their cultivation costs has posted a record high price of raw cotton on Monday.
Farmers sold raw cotton in the mandi of Hinganghat in Wardha district at an all time high price of Rs 8,150 per quintal. The current price of raw cotton, a level well above the minimum support price (MSP) of Rs 6,025 per quintal fixed by the Government for the current season, has also surpassed expectations of many farmers in the cotton rich Vidarbha and Marathwada regions.
It is important to note that the farmers had sold raw cotton at a price between Rs 5,400 and Rs 6,000 per quintal in the last season when its MSP was Rs 5,825 per quintal. Rohit Rander, one of the leading cotton dealers, told The Hitavada that cotton is enjoying overwhelming demand at the international markets which is one of the main reasons for rising prices.
“In the post Covid-19 scenario, many developed nations including the USA are buying huge quantities of cotton. In the domestic markets, too, the agri-produce is in great demand,” he said. According to him, cotton consumption has seen a sharp hike in the recent past.
“However, there is no proportionate hike in the sowing area. Similarly, there were reports of cotton crop damage in some parts due to rains,” he explained. Rakesh Haribhai Chandarana, Partner in Jalaram Ginning & Pressing, Hinganghat, said that the heavy demand for cotton is likely to continue for next few months.
“We may see the prices going up further as demand for cotton is showing an upward trend from all corners,” he observed. Interestingly, the commodity is trading at high levels in most of the commodity exchanges across the globe. The Cotton Corporation of India is also reportedly running short of carry forward stock.
The corporation has exhausted almost half of its carry forward stock. Commenting on other reasons, he said that the cotton harvesting in the country which starts from October and goes on till April, has been delayed in the current season which is also pushing up the prices.
In the meanwhile, a farmer based in Seloo tehsil in Wardha, who preferred not to be quoted, said that the price of Rs 8,150 per quintal for cotton is like a dream come true for him. “All the farmers in our village are happy with the current price of cotton. It seems that we will get good returns this season,” he said. (Source: www.thehitavada.com)