Cotton prices increased beyond 8,500 due to war, but farmers are not getting benefits
Maharashtra (Selu): Due to the US-Iran war, the demand for cotton has increased globally, due to which its prices have increased. The price of one Khandi (two bales) has increased from Rs 53 thousand to Rs 58 thousand. On Wednesday, private traders in the Agricultural Produce Market Committee premises gave prices ranging from Rs 8,400 to Rs 8,500 per quintal for cotton.
However, farmers are not getting much benefit from this increased price, because at the district and taluka level, farmers have almost run out of cotton to sell. This year, due to heavy rains in the Kharif season, production reduced and due to low prices in the initial phase, farmers sold only limited quantities of cotton. The arrival of cotton in the market has stopped for the last one month, due to which the season is almost over.
Earlier, the price of cotton by private traders was up to Rs 7,200 per quintal, while the Cotton Corporation of India (CCI) had also stopped its purchases. Due to shortage of cotton in the market, production in ginning mills has also come to a standstill for the last one month.
According to Ritesh Toshniwal of Tirupati Cotton Industries and Oil Mill, Valur, "Due to the war, the supply of crude oil has been affected and the prices have increased. This has increased the demand for cotton as an alternative to synthetic thread. Now the price of cotton has reached eight and a half thousand rupees, but the farmers do not have the goods to sell. The little that is coming, the traders are immediately buying it."
This year, under the policy of the Central Government, 40 lakh bales of cotton were imported into the country, whereas normally this figure is 10 lakh bales. Before the increase in imports, the price of cotton was Rs 55-56 thousand per khandi, which came down to Rs 52-53 thousand. Now due to the US-Iran war, there has been a surge in demand and prices have started rising again.
Procurement was done by CCI at a support price of Rs 8,100 per quintal, but cotton with higher moisture content was taken at a lower price. Traders had given prices ranging from Rs 7,200 to Rs 7,700 depending on the quality. Now mainly traders are getting the benefit of increased prices, because farmers have no stock left.
