Punjab & Region

Cotton prices at all-time high in Punjab, kharif crop fetching ₹7,500 per quintal

The Fact News Service
Chandigarh, October 8

As the second picking of raw cotton crop is set to gain momentum in Punjab, rates of the cash crop have reached an all-time high of ₹7,715 per quintal, 23% higher than the minimum support price (MSP) of ₹5,925.

Punjab Mandi Board authorities say till Wednesday, 2.75 lakh quintal of cotton was purchased and private players are paying an average rate ₹7,500 for a quintal of raw cotton.

This has come as a relief to farmers of the south Malwa belt, who are battling the threat of damage caused by the pink bollworm attack.

In the semi-arid region of the state, cotton bolls are harvested thrice. Second picking is crucial as it comprises 60% of the total production. Due to the quality, the second harvest determines the profitability of a cotton grower.

Industry watchers attribute higher prices for the kharif produce to an increase in demand by the international textile market.

Director of Indian Cotton Association Limited, a body dealing in export, spinning, ginning of cotton, Rakesh Rathi said the trend may continue for another month.

Bulk supply in the coming weeks may stabilise rates, but it is highly unlikely that cotton would see a sharp decline this season, he added.

“Bangladesh and China, the international hub of the textile sector, are the major buyers of Indian thread and raw cotton. Since there has been a sharp increase in the global market since September 15 and the slow arrival of cotton crop in different states, farmers are getting handsome rates,” said Rathi.

With 3.03 lakh hectares under area cotton this year, southern Punjab recorded an increase of 17% than 2020 when cotton was sown on 2.51 lakh hectares.

But pink bollworm attack in Bathinda, Mansa and few pockets in Sangrur has left farmers worried about their major cash crop.

Punjab Mandi Board cotton state coordinator Rajnish Goel said by October 6, a total of 2.74 lakh quintal cotton was purchased in centres of all seven districts of the region. By October 6 last year, Punjab mandis saw 1.29 lakh quintals of purchase.

“For the first time, cotton rates have touched ₹7,700 per quintal. In 2011 the maximum rate of cotton was ₹7,000 and ₹6,725 in 2014. Mandis are recording daily average arrival of 25,000 quintals,” said Goel.

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