Cotton price ruling high in Punjab due to less arrival

The farmers of Punjab are reaping rich dividends, as the prices of cotton continue to rule high due to less arrival of cotton in the mandis of the state as compared to the corresponding period last year.

There has been a 32 per cent decline in arrival of cotton in the state’s traditional markets as on yesterday, as compared to corresponding date last year.

According to the data compiled by the Mandi Board, the average price of long staple cotton is hovering between Rs 2,800 and 4,865 per quintal, and Rs 3,400 and Rs 4,345 per quintal for medium staple.

As on September 26 this year, 74,197 quintals (approximately 14.839 bales ) of cotton arrived in the state’s mandis as compared to 1.09 lakh quintal (21,779 bales) during the corresponding period last year.

Considering the data, there has been shortfall of 32 per cent in arrival as compared to last year. Experts say the farmers were able to get better price of their produce, due to less arrival, coupled with increase in demand. At present, the procurement is dominated by private players and government agencies like Cotton Corporation of India and Markfed are yet to enter the mandis of the state.

Among the private players, Textile mills and private traders are dominating the procurement. The private traders and millers managed to procure 74,197 quintals till this September 26, as compared to 1.09 lakh quintal last year. The traders anticipates the near future will see the price of cotton further heading north, as rain has affected the crop.

This year, cotton was sown in Punjab in an area of 5.50 lakh hectare as against 4.83 lakh hectares last year. But inclement weather conditions mainly owing to heavy and prolonged rain (in end-August and early this year) has affected the crop in parts of the state. Rough estimates put it at 90,000 hectares. (The exact data about the damage crop has yet to be compiled.)

Business Standard did report earlier that rains in the state could damage the cotton cultivation following delay in the picking operations and the resultant late arrival of the crop in the markets.