Cotton prices skyrocketed, 3% higher than MSP, prices will increase further due to less sowing
2024-09-11 12:21:58
Prices for cotton surged, rising 3% over MSP; less sowing will cause prices to rise even more.
Due to the shortage of cotton, prices are continuously rising in the market. In the current season, cotton prices have gone up by 3% above the Minimum Support Price (MSP), and experts believe that there may be further jump in them in the future.
There are many reasons for this increase in cotton prices. In this Kharif season, farmers have sown cotton in 11 lakh hectares less area. Apart from this, heavy rains in major cotton producing states like Maharashtra, Telangana and Andhra Pradesh have caused great damage to the crop. In Punjab too, cotton sowing has decreased compared to last year.
Last year, the outbreak of caterpillar pest in the cotton crop had badly affected the yield, due to which the farmers suffered a lot and they could not even recover the cost. This year also, farmers are showing less interest in cotton cultivation, the effect of which is visible in sowing.
Signs of reduction
According to the Union Ministry of Agriculture and Farmers Welfare, till September 2, 2024, cotton has been cultivated in 111.74 lakh hectares across the country, which is about 11 lakh hectares less than 123.11 lakh hectares last year.
Cotton prices in wholesale markets
The average price of cotton in the wholesale markets of Surat and Rajkot has reached Rs 7525 to Rs 7715 per quintal, while in Amreli it is Rs 7450 per quintal. The maximum price of cotton has been recorded up to Rs 12,222 per quintal in Chitradurga Mandi.
Difference between MSP and prices
The central government has increased the MSP of cotton by Rs 501 for the 2024-25 season. Now the MSP for the medium staple category is Rs 7121 per quintal and for the long staple category it is Rs 7521 per quintal. The difference between the average price of cotton in the market and the MSP has increased to Rs 300-400 per quintal, indicating a further increase in prices in the coming days.
The ever-increasing prices of cotton are posing a new challenge for both farmers and the market.
