Cotton crop fetches double the MSP in Punjab

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Bathinda, April 4

The “white gold” has been selling at record Rs 12,300 per quintal in this cotton belt these days, nearly double the minimum support price (MSP) of Rs 6,025 fixed by the Union government.

The cotton crop was sold at Rs 12,300 per quintal at Fazilka a few days ago, while it fetched a handsome Rs 11,700 in Mansa today.

State’s yield down 47% this season

• There has been a higher demand in the international market as the yield has been poor this time
• Cotton-producing Bathinda and Mansa districts have seen 61 per cent and 50 per cent decline in yield, respectively, this season
• Average rate in the state has gone up by 26 per cent from last season, while its yield has dipped by 47 per cent this season

Selling price per quintal Rs 12,300

MSP Rs 6,025

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Mandi board cotton state coordinator Rajneesh Goyal said although the crop in the Malwa region was damaged due to the pink bollworm attack, farmers who survived the attack were reaping a rich harvest.

“Cotton rates have touched Rs 12,300 per quintal for the first time. In 2011, the maximum rate of cotton was Rs 7,000, while it touched Rs 6,725 in 2014,” said Goyal.

Pvt players on buying spree

Private traders are competing among themselves to purchase cotton, forcing them to offer higher prices to producers. —Commission agent

He said the average rate of cotton in the state had witnessed a 26% increase from the last season, while the yield had dipped by 47% this season. The quantity purchased at record Rs 12,300 per quintal could, however, not be confirmed.

With an increased demand for cotton in the domestic and international markets, private traders are competing against each other to buy the crop, jacking up the prices, say experts

A commission agent here said: “There has been a good demand in the international market, even as the yield has been poor this time. Private traders are competing among themselves to purchase cotton, forcing them to offer higher prices to producers.”

Experts claim the price of cotton has been on the rise due to shortage in supply. The companies are getting good rates internationally, as a result of which they are buying whatever stock they can get their hands on at whatever price.

It has been a windfall for many farmers who withheld their produce earlier, when the prices were around Rs 8,000 per quintal, in the hope of the prices to increase.

The two major cotton-producing districts of Bathinda and Mansa have witnessed decline of 61% and 50% in yield, respectively, this season.