Cotton Prices Near ₹10,000; Open Market Surges Amid Fears of Production Decline
Jalgaon, Maharashtra: Cotton prices in the open market are witnessing a surge, driven by concerns over a potential decline in cotton production across the Khandesh region, including Jalgaon, Maharashtra. According to local market reports, private traders are purchasing high-quality cotton at prices ranging from ₹9,000 to ₹9,600 per quintal. Market observers anticipate that if arrivals remain limited while demand stays strong, cotton prices could reach the ₹10,000 per quintal mark.
Cotton Crop Affected by Lack of Rainfall
Reports indicate that the cotton crop has been adversely affected during this year’s Kharif season due to a delayed monsoon and insufficient rainfall. A lack of moisture has hindered the development of flowers and bolls on the plants, raising concerns about a drop in regional cotton production.
Local estimates suggest that cotton crops sown on time may yield four to five quintals per acre. Meanwhile, in some rain-fed areas, yields are expected to be significantly lower.
Private Traders Ramp Up Cotton Procurement
Anticipating a potential shortfall in production, private traders have intensified their procurement of cotton directly from villages. With open market prices exceeding ₹9,000 per quintal, farmers are seeing better returns. However, if production volumes fall, the overall income of farmers could still be negatively impacted, despite the higher prices.
Ginning Industry Concerned Over Raw Material Shortage
According to Pradeep Jain, President of the Khandesh Ginning Traders Association, the decline in cotton production is leading to a shortage of raw materials for ginning units. He noted that the price of raw cotton has reached ₹9,000 per quintal, while the price of processed (ginned) cotton has climbed to approximately ₹67,000 per candy. Strong market prices have raised farmers' expectations. However, the future direction of prices will depend on the actual arrival, quality, and demand for cotton in the coming days.
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