Cotton Market: Cotton prices will make farmers cry; consequences before the season starts?
Cotton Market: The central government has decided to reduce the import duty on cotton from 11 percent to zero by December 31. This will benefit the textile industry, but farmers will be disappointed once again. Cotton prices are likely to remain at the guaranteed price this season. (Cotton Market)
Results before the cotton season starts?
The central government has taken this decision with one month left for the cotton season to start.
This exemption has been given so that the textile industry can get cheap cotton. However, it is clear that this will not boost domestic cotton, but will lead to a fall in prices.
Effects of zeroing import duty
Traders will import cheap cotton from abroad instead of buying from the domestic market.
This will reduce the demand for our cotton.
As a result, farmers will not get the expected prices and prices will fall in the cotton market.
This year's guaranteed price
Long-strand cotton: 7,710 to 8,110 per quintal.
To get this price, farmers have to sell cotton at CCI (Cotton Corporation of India) procurement center.
It is also mandatory for farmers to keep a record of the cotton sown in their fields.
Cotton prices in the last 5 years Annual average price (₹/quintal)
It is clear from the above data that after 2021, cotton prices have fallen continuously and this year too farmers will not get much relief.
Picture of cotton sowing in the district
This year cotton has been sown in about 3 lakh hectares.
Compared to last year, there has been a decrease of about 1 lakh hectare in cotton cultivation.
There is a continuous decline in the cotton acreage due to farmers not getting the expected price.
The decision of the Central Government to make the import duty on cotton zero will reduce the domestic demand. As a result, prices will fall. Farmers will have to sell cotton at the CCI procurement center. - Rajendra Shelke Patil, Farmer, Dhamori
The textile industry will benefit from the abolition of import duty. They will be able to import good goods at a lower price. However, due to this, the ginning industry is likely to collapse. - Rasdeep Singh Chawla, Secretary, Maharashtra Ginning Association
There is already pressure on the prices of cotton, in such a situation, this decision of the Central Government will increase the problems of the farmers. The textile industry will get relief, but farmers may have to face disappointment once again.
