Khandesh Cotton Market: Arrivals decreased, signs of strengthening in prices
Cotton market in Khandesh region is currently in the news due to limited arrivals and decreasing production. In the current situation, about 3,000 to 3,500 quintals of cotton are arriving daily across the country, which is much less as compared to the last season. Due to less supply, there is a gradual improvement in prices in the market.
While at the beginning of the season (mid-October), 6,000 to 7,000 bales of cotton were arriving in the market every day, now a sharp decline has been recorded in the arrivals. According to experts, production has been affected this year due to reduction in cotton cultivation, disease on the crop and heavy rains.
The maximum purchase rate of cotton at the rural level is currently around ₹ 8,000 per quintal, but due to less stock with the farmers, they are not able to take full advantage of this price. Most of the farmers have already sold their produce between February and March, due to which the supply in the market has further reduced.
The arrival is expected to be limited to 1,500 to 2,000 quintals in the coming 10 to 15 days. This is the reason why the possibility of a major fall in prices is considered less.
The low arrivals are also impacting ginning and pressing units in Khandesh and surrounding areas, where operations have slowed down. Variation in prices is being seen in different regions, but the level of ₹8,000 per quintal remains high for good quality cotton.
The situation on the production front is more worrying. This year, in many areas the production has been only 80 kg to 1 quintal per acre. Heavy rains have caused widespread damage to the crop, leading to a major decline in total production. It is estimated that this time the target of producing 20 lakh bales will not be achieved in Khandesh.
Overall, the cotton market currently remains bullish due to low production and limited arrivals, while stock shortage remains a major challenge for farmers.
