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Cotton production rises in Telangana, but rain and prices remain a concern

Cotton production in Telangana will increase, but farmers are worried about rain damage and low prices.Telangana is preparing for the cotton harvesting season, which begins in October. Farmers expect higher yields this year, but are concerned about quality after heavy rains.Officials estimate that cotton production could increase by approximately 5 to 10 percent. Production could reach 5.3-5.5 million bales compared to last year's 5-5.1 million bales. This would make Telangana India's third-largest cotton producer. Each bale weighs approximately 170 rupees per kilogram.However, rain and attacks of sowing rot have damaged the crop. Prices are also a concern. In markets like Warangal, arrivals have just begun. Farmers are selling cotton at 900 to 1,000 rupees less than the minimum support price (MSP) of 8,110 rupees per quintal.In Kumarambheem-Asifabad district, cotton arrivals will only begin in early November."In our district, arrivals will be delayed. Last year, we received around 1.8 million quintals of cotton. We expect a similar number or slightly more, although some losses cannot be ruled out," District Marketing Officer Ashwak Ahmed told South First.At Enumamula Market Yard in Warangal, prices are around Rs. 7,440 per quintal. Since the Cotton Corporation of India (CCI) has not yet begun procurement, farmers are selling cotton at market prices. Many are afraid to hold on to cotton due to the risk of losses.Cotton is widely grown in Telangana. Major districts include Nalgonda, Adilabad, Sangareddy, Nagarkurnool, Warangal, Nirmal, Asifabad, Mahabubabad, Jayashankar Bhupalpally, and Kamareddy.August rains proved costlyThe season started well. Good early monsoon rains helped farmers sow about 99 percent of the normal area by mid-August. But rains in late August led to the outbreak of ball rot, a fungal disease. Farmers fear it could lead to a 20-30 percent yield reduction in affected areas.In Telangana, medium-staple Bt hybrids are mostly grown, with a fiber length of 20-25 mm. Under good conditions, these yield 10-12 quintals per acre. However, in some areas, such as Adilabad and Warangal, yields have dropped to 6-9 quintals per acre. Pest attacks and stunted growth have exacerbated the losses."The rains came at the worst possible time," said A. Padma Reddy, a farmer from Adilabad.He added, "We were expecting a bumper crop with the increase in MSP, but ball rot has severely affected us."This year, the MSP for medium-staple cotton has been increased to Rs. 8,110 per quintal, up from Rs. 7,121 last season. But prices remain low in markets like Warangal (Rs. 7,500 per quintal) and Jammikunta (Rs. 5,500 per quintal). Traders cite global oversupply and poor quality due to rains.Telangana Agriculture Minister Thummala Nageswara Rao has asked the CCI to strictly ensure MSP procurement. He announced direct bank payments through Aadhaar verification. He stressed that Telangana's cotton is of unparalleled quality and deserves a fair price.Confusion about MSPMany farmers remain skeptical. A farmer from Adilabad said, "MSP is a lifeline. But if procurement is delayed and prices remain low, small farmers will suffer."On September 19, 2025, Rao met with CCI officials to plan the season. They agreed to set up a command control room to monitor daily operations. CCTV cameras will be installed at procurement centers and ginning mills. Local monitoring committees will check weighing and quality.A toll-free number (1800 599 5779) and a WhatsApp helpline (88972 81111) have been launched for farmers' complaints .The Central Council of Agricultural (CCI) is also promoting digital registration. Its "Cotton Farmer" app allows farmers to book procurement slots. Agriculture officials will train farmers, including lessees, who can register via OTP with the landowner's approval. The minister also warned transport associations against charging excessive fees for transporting cotton to mills.Nationally, cotton production is estimated to be 325-340 lakh bales in 2025-26, up from 294 lakh bales last year. Cotton acreage has declined to 113.13 lakh hectares, but improved yields are expected. Telangana accounts for 15-16 percent, behind Gujarat and Maharashtra.The state hopes that new hybrids, better procurement, and more centers—122 this year—will help farmers. But challenges remain. Seed rot, low prices, and transportation bottlenecks can reduce profits.read more :- Cotton MSP Hike: India's Trade and Exports

"Prices lower than MSP, cotton farmers ready to crowd the market"

Cotton farmers brace for a rush at procurement centers as market prices remain below the MSP.As Telangana's cotton marketing season approaches, farmers are bracing for a surge at procurement centers as market prices are falling well below the MSP. With over 600,000 farmers affected, the state has expanded procurement facilities and introduced digital tools like the Cotton Farmer App to manage these crowds. However, concerns remain about payment delays, quality-related rejections, and private traders taking advantage of long queues.Hyderabad: With the 2025-26 cotton marketing season set to begin in mid-October, Telangana farmers are bracing for a rush at government procurement centers as market prices remain well below the Minimum Support Price (MSP). This price gap has raised concerns about bottlenecks and delayed payments for nearly 600,000 farmers in districts like Warangal, Adilabad, and Nalgonda.Currently, market prices in markets like Jammikunta and Bhainsa are ranging between ₹6,333 and ₹6,805 per quintal, and reaching up to ₹10,000 per quintal. The MSP for medium-staple cotton is ₹1,435 to ₹7,710, lower than the 8.27 percent increase from last year. The situation is even worse for long-staple varieties; the MSP is fixed at ₹8,110, but market prices are significantly lower.In a recent meeting, state officials and representatives of the Cotton Corporation of India (CCI) cited the ₹1,099 MSP-market gap as a major concern and urged aggressive procurement to protect farmers from distress sales. Telangana expects 5.3-5.5 million bales from 1.851 million hectares of cotton cultivated this season, with the potential to reach 7 million bales under favorable conditions.To manage the expected surge, the number of procurement centers has been increased from 110 to 122, with a new facility added at Konaraopet in Rajanna Sircilla. Last season, Telangana had the highest procurement nationally, procuring 4 million bales of cotton at 508 centers, but this year's anticipated high arrivals could put significant pressure on the system.CCI President Lalit Kumar Gupta said the agency aims to procure 5-7 million bales of cotton nationally, but warned that, like last year, peak arrivals could exceed capacity. There are fears that private traders could take advantage of long queues at centers to purchase cotton at cheaper prices.In response, the state has launched the Cotton Farmers App for slot booking, Aadhaar-linked payments, and monitoring committees at local centers to ensure fair quality checks and accurate weighing. A toll-free helpline (1800-599-5779), WhatsApp support (88972-81111), and a new command control room at the Directorate will provide real-time grievance redressal.Globally, cotton production declined by 1.3 percent to 117.2 million bales, and international prices remained below production costs due to higher supplies from Brazilian exports, further depressing Telangana's market rates.Officials have warned that 80-90 percent of Telangana's production could end up at CCI centers, risking payment delays and quality-related rejections. A trader from Nalgonda warned, "Lower prices will mean procurement disruptions. Small farmers could lose thousands per acre if CCI doesn't take immediate action."

Cotton prices remained stable despite market equilibrium.

Cotton prices remain unusually stable amid market equilibriumWhile other commodity prices have seen significant fluctuations throughout the year, cotton has maintained remarkable stability.Since January, cotton prices have consistently traded within a narrow range of 65 to 69 US cents per pound, a stark contrast to the volatility seen in other commodity markets.(SIS)This week, cotton's historical volatility reached multi-year lows, underscoring the current calm.According to Commerzbank AG, the difference between the monthly high and low in September was just 2 US cents.This trend of limited price movement was also seen in July and August.During the first half of the year, the typical monthly trading range was 4-5 US cents, with April being the only exception at 9 US cents.(SIS)The German bank noted in an update on Friday that the brief spike in volatility in April stemmed from a temporary drop in prices to just over 60 US cents following US President Donald Trump's announcement of reciprocal tariffs.“The decline in price volatility began last year, when prices peaked at nearly 100 US cents per pound in the first quarter of 2024,” said Commerzbank commodity analyst Karsten Fritsch in the update.Market balance is a key factorThe current stability in cotton prices can largely be attributed to the near-equilibrium state of the market since last year.For the current 2025-26 crop year, the US Department of Agriculture (USDA) projects a modest supply deficit of 250,000 tons.This is based on an estimated supply of 25.62 million tons and demand of 25.87 million tons.(SIS)The previous crop year saw an even smaller gap between supply and demand, with a modest supply surplus.*This year, the US cotton crop is projected to be 8% smaller... A decline is expected, resulting from significantly reduced acreage and lower yields.(SIS)However, the low abandonment rate (the difference between planted and harvested acreage) has helped to limit the overall reduction in crop volume, Fritsch said.Due to the smaller crop and a modest increase in exports, US cotton stocks at the end of the crop year are expected to be slightly lower than at the beginning.China's Dominance and the Impact of Trade DisputesChina has a significant influence on the global cotton market, ranking first in both supply and demand, ahead of India.Since China consumes more cotton than it produces, it relies on imports.These imports saw a notable decline in the previous crop year, and according to USDA forecasts, no significant increase is expected this year.(SIS)Brazil, which surpassed the US as the largest cotton exporter two years ago, can easily meet China's import needs on its own."This is why the trade dispute will play a smaller role for cotton than for many other agricultural commodities," Fritsch said.It is clear that this stability in cotton prices will not last forever.While the current stability in cotton prices is not expected to last indefinitely, what will ultimately disrupt this equilibrium remains unclear.(SIS)However, it is not entirely clear what could push prices out of their comfortable range.Cotton prices have been unusually stable since January, trading between 65 and 69 US cents per pound.This stability is due to a near-balance in the market, with a slight shortage in supply projected for 2025-26.China's dominant role and Brazil's export capacity suggest that trade disputes will have a limited impact on prices.(SIS)read more:-   CCI sells 88% of cotton through e-auction, weekly sales at 2.95 lakh bales

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