Gujarat - Historic jump in the price of 'white gold' cotton, price reached Rs 2036 per 20 kg
There is a continuous rise in the prices of cotton, due to which the faces of the farmers are happy. In Savarkundla Marketing Yard of Amreli district, the price of good quality cotton has reached Rs 2036 per 20 kg, while normal quality cotton is being sold between Rs 1700 to 1800 per 20 kg.
According to Mukeshbhai Trivedi, Secretary of Savarkundla Marketing Yard, cotton prices have been continuously improving for the last few years. At present, due to less arrival of cotton in the market, competition for purchasing among traders has increased, which has strengthened the prices.
Cotton is a globally traded crop, so its prices are influenced by international market conditions. In many parts of the world, supply-related challenges, trade uncertainties and strength in global demand are being considered the main reasons for the current rise. Its positive effect is clearly visible in the local markets also.
According to market sources, the stock of cotton with big traders is limited. At the same time, cotton is being brought directly to the market by the farmers. Earlier, the availability of cotton in the open market had reduced due to large-scale purchases by the Cotton Corporation of India (CCI). Due to this, at present the arrivals in the markets remain limited.
Despite reduced arrivals, the demand from mills and traders remains constant. The widening gap between demand and supply has pushed cotton prices to new highs. At present, the average price of cotton in the mandis of Amreli and Savarkundla is being recorded between Rs 1800 to Rs 2000 per 20 kg, while better quality cotton is getting even higher prices.
Agricultural experts believe that if the arrival of cotton remains limited and the demand in the global market remains strong, then further increase in prices is possible in the coming time. However, factors like export demand, international market conditions and local arrivals will play an important role in determining future prices.
The current prices are proving profitable especially for those farmers who have not yet sold their cotton stocks. The rising prices of cotton have brought relief and hope of better income to the farmers of Amreli district.
