Cotton Price: Prices rise after farmers run out of cotton
Wardha News: The prices of cotton have risen across the country due to the decrease in moisture content in the cotton currently coming to the market as compared to the beginning of the season as well as the increase in the price of silk. At present, cotton is trading at Rs 7,000 to Rs 8,000 per quintal.
The central government had declared a price of Rs 7121 per quintal for medium-staple cotton and Rs 7521 per quintal for long-staple cotton. However, cotton was not purchased from farmers at this rate throughout the season. On the one hand, the productivity of cotton has declined and it has stabilized at four to five quintals per acre. Cotton producers were in a situation where productivity costs were rising and prices were falling.
This does not even include the productivity cost of cotton. This has also affected the cotton cultivation area. Now that the cotton season is in its final stages and farmers have very little stock left, the price of cotton has gone up by Rs 1,000 per quintal. At the beginning of the season, the moisture content in cotton ranges between 10 to 14 per cent. Now it has come down to 6 to 7 per cent. Experts in the field said that the price of sugar has also increased.
The market price of sugarcane was Rs 3200 to Rs 3300 per quintal. Now it has increased and it is trading at Rs 3,700 per quintal. As a result of all this, the prices of cotton have gone up. Vinegar is used for oil and it also provides a base during the process. These value-added products are used in food and animal feed. As a result of this boom in the market, the prices of cotton have gone up.
Hinganghat (Wardha) Market Committee is famous for cotton. At present, a huge amount of cotton is arriving in this mandi. Ginning traders have to buy cotton by participating in the auction process of the market. Market Committee Secretary Tukaram Chambhare said that farmers come here to sell cotton because the entire transaction is transparent.
Currently, 10 to 15 percent of cotton stock is left. The percentage of good quality cotton does not exceed 10. That is why prices have increased. Rates have increased from Rs 7,000 to Rs 8,000.
The arrival of good quality cotton in the market has reduced. The price has been revised accordingly. Cotton producers can get good profits only when the area of cotton sowing and productivity decrease in the coming time. Because according to economic theory, demand and supply affect prices.
