Cotton prices up in Punjab on supply constraints

The arrival of cotton in Punjab has dropped by over one lakh bales this season due to unfavourable weather conditions and pest attack, leading to a surge in cotton prices.

The state had so far received 6.68 lakh bales of cotton compared with 7.9 lakh bales in the same period last year, a fall of 1.22 lakh bales, an official of the state Agriculture Department said here.

The shortfall in arrival has proved to be a boon for cotton growers as they fetched Rs 300-500 a quintal higher than last year.

The prices of cotton have surged between Rs 2,325 and Rs 2,450 a quintal from a level of Rs 1,900 to Rs 2,000 a quintal last year.

According to experts, use of spurious varieties of Bt cotton seeds by state farmers this year is another factor which is bound to lower the output.

The area under cultivation of all kinds of Bt varieties this year jumped to 5.57 lakh hectares from 3.84 lakh hectares last year.

The area under cotton cultivation this year increased to 6.48 lakh hectares from 6.07 lakh hectares last year, but the state was expecting a shortfall in cotton output.

"Last year, the cotton output was 26.78 lakh bales and this year we expect it will restrict to 25.70 lakh bales," the official said.

Concerned over the fall in output, Punjab government had even apprised Prime Minister Manmohan Singh of the grim situation.

Cotton experts said that adverse weather conditions hit the crop growth especially in Mukstar, Ferozepur and Faridkot districts during the initial months.

Attack of mealy bug and whitefly compounded the problems of cotton growers, forcing them to shell out additional sum of Rs 1,500 to Rs 2,000 an acre on pesticides, they said.