Farmers expand area under cotton by 24% on price increase, MSP hike

Demand to pick up now as textile mills resume operations after lockdown

Buoyed by increase in futures prices and the minimum support price (MSP), cotton farmers have increased acreage under the cash crop by shifting from maize and soybean in the early kharif sowing season.

Following a rise in cotton prices (by 3 per cent) in the first fortnight of June after a fall earlier and an increase in MSP by the agriculture ministry by 5 per cent, farmers have planted more cotton this kharif season.

The benchmark cotton futures for near month delivery jumped by 3 per cent on the Multi Commodity Exchange of India (MCX) to trade at Rs 16,120 a bale