Cotton procurement from October 15; prices already above ₹8,600 a quintal as output is set to fall

Nagpur: Cotton procurement will begin on October 15. Because rain stayed away, cotton output is expected to fall by 20 to 25 per cent this year, and prices are already reflecting it, Navarashtra reported. The situation is said to be comparatively better in the Nagpur division but serious in the Amravati division. Official figures are yet to be released.

According to traders, cotton fetched at most ₹7,400 to ₹7,500 a quintal last year; this year the rate is already above ₹8,600 and is expected to cross ₹9,000 and possibly go beyond ₹9,500. The Centre has fixed minimum support prices in three slabs of ₹8,567, ₹8,617 and ₹8,667 depending on staple length, from 27.5 mm to above 29.5 mm. Cotton now arriving in the market has high moisture content, traders say.

Experts say the state produced about 115 lakh bales last year and output may drop to 90 to 95 lakh bales this year. Under a decision taken at a central-level meeting, the Cotton Corporation of India (CCI) will open 179 purchase centres in the state in the first phase, 96 of them in Vidarbha. Even if prices rise, growers in drought-hit areas could take a big hit from lower output.

Source: Navarashtra