Dip in Sowing Area and Rain Concerns Push Cotton Prices Up in Gujarat
2024-09-19 12:56:33
Rising Cotton Prices in Gujarat Due to Sowing Area Decline and Rain Worries
Cotton prices in Gujarat have surged past ₹8,500 per quintal, the highest in three years, driven by reduced sowing areas and fears of lower yields due to heavy rainfall. Prices have been rising since late August, offering hope to farmers for better returns on their harvests.
In Rajkot APMC, cotton prices now range from ₹7,500 to ₹8,525 per quintal, compared to last month’s rates of ₹7,400 to ₹7,935. Traders report that the recent rains have delayed the crop by three to four weeks and affected yields, prompting farmers to hold off selling their harvests. This has led to an average price increase of ₹500 per quintal.
Additional factors contributing to the price rise include higher costs of cottonseed oil and de-oiled cake (DOC), premium cattle feed. Cottonseed prices have also climbed to around ₹4,000 per quintal, further supporting the upward trend.
Cotton acreage in Gujarat has dropped to 23.65 lakh hectares (lh), down from 26.82 lh in the 2023 season and lower than the three-year average of 24.95 lh. In contrast, groundnut sowing has increased to 19.10 lh from 16.35 lh last year, reflecting a shift among farmers.
The recent price uptick has provided some relief to farmers facing potential yield losses due to the rains. Many, like Jeram Mithapara from Surendranagar, are concerned about pest attacks and crop damage, hoping for cotton prices to reach ₹10,000 per quintal to offset rising cultivation costs.
While cotton remains a key kharif crop in Gujarat, many farmers have expanded groundnut cultivation due to its better returns and resilience against pests and wildlife. Despite the challenges, Gujarat continues to be the largest producer of cotton and groundnuts in India.
