Cotton arrivals begin in Andhra markets

Around 40 per cent of the estimated 41 lakh bales of fresh cotton has arrived in various markets of Andhra Pradesh.

The best variety (32 mm) cotton is fetching farmers a steady Rs 1,950-2,000 a quintal, while the 28 mm variety is priced at Rs 1,700 a quintal.

The market has received a boost as demands from China, Bangladesh and Malaysia come thick and fast. Traders said Guntur alone had received order for five lakh bales from China, and two-three lakh bales each from Bangladesh, Hong Kong and other south-east Asian countries.

The 700-odd ginning mills located in and around Guntur are expected to consume 50 per cent of the crop, despite the fact that manpower shortage has hit their operations. The mills have ginned only 15 per cent of what they bought from traders.

Transporters have increased their charges abnormally, forcing traders to go slow on buying. However, traders hope to buy 80 per cent of the crop arrived here as the prices in Guntur are lower than that of Cotton Corporation of India's Rs 2,050 a quintal.

The crop began to arrive in the market as early as September. But due to excess moiture content in the crop, farmers received only Rs 1,400 a quintal. Later, they realised their mistakes and delayed the arrivals.

Meanwhile, farmers from Adilabad, Karimnagar, Nandyal, and other areas are bringing their crop to Guntur as traders here are offering better prices.

Local traders are eagerly awaiting the new cotton contract called 'Bt Cotton 118' to be launched by the Surendranagar Cotton Exchange in Gujarat.