Slow Cotton Arrivals in Markets; Farmers Withhold Stock in Anticipation of Price Hikes After December 31
Jalgaon: Cotton production has declined this year due to weak rainfall. Initially, farmers were eager to sell their produce, encouraged by favorable prices at the start of the season; however, market sentiment shifted after the central government extended the exemption on cotton import duties until December 31. With prices falling, most farmers have chosen to withhold their stock, leading to a slowdown in cotton arrivals at the agricultural markets (*mandis*).
The original deadline for the import duty exemption was October 31, by which time approximately 300,000 bales of cotton had arrived at the markets. Following the government's decision to extend the exemption period to December 31, cotton prices dropped from Rs 9,500 per quintal to around Rs 8,900 per quintal. Currently, total arrivals remain at approximately 300,000 bales, with only those farmers in urgent need of cash opting to sell their produce.
**Expectations of a Price Surge After December 31**
Industry experts believe that if the government reinstates import duties on cotton after December 31, it could provide support to prices in the domestic market. Anticipating this, farmers are currently adopting a "wait-and-watch" approach. Future cotton arrivals will also depend on price trends in the international market.
**Private Market Prices Exceed MSP**
The Cotton Corporation of India (CCI) initiated the registration process for cotton procurement at the Minimum Support Price (MSP) starting September 1. However, as prices in the private market are currently higher than the MSP, farmers have shown little interest in registering at government procurement centers.
Raosaheb Patil, a farmer from Adgaon in Chopda Taluka, noted that the quality of this year’s cotton crop is good, and he remains hopeful of securing better prices. An increase in import duty concessions has led to a decline in prices. Consequently, farmers have decided not to sell their produce for the time being, opting instead to wait for a potential price rise after December 31.
Meanwhile, according to cotton market expert Harshal Narkhede, the arrival of produce at agricultural markets (mandis) has slowed down, partly due to the Diwali festival. Furthermore, the expanded import duty concessions have exerted downward pressure on prices. While some farmers may bring their produce to the markets in the coming week, many others are likely to continue holding onto their stocks in the hope of securing better prices.
read more:- Agricultural Markets Reopen After Diwali; Over 500 Vehicles Expected at Khargone Mandi
