Khammam: Cotton being lifted at more than MSP
Interestingly, the Cotton Corporation of India has not commenced its lifting operations in the district.
Khammam: The cotton business is doing well in Khammam, thanks to the falling value of the rupee against the dollar. Cotton exporters now prefer to buy cotton from India, China and Bangladesh.
Private traders in Khammam and elsewhere are receiving a number of orders from Gujarat and Maharashtra exporters. The price of cotton seeds per quintal has increased from Rs 1,500 to Rs 2,200 per quintal. Candy cotton (356 kg) price is Rs 47,000 against Rs 40,000 the previous year.
Interestingly, the Cotton Corporation of India has not commenced its lifting operations in the district. Private traders themselves have lifted 42,000 quintals cotton from farmers since October 1.
About 12,000 bags are coming to the market daily for the last one week and private traders are competing to lift these. The minimum support price of cotton declared by the Central government is Rs 5,450 per quintal. Traders are giving Rs 5,600 per quintal for good quality cotton.
When compared to the previous year, the present prices are quite impressive and farmers are happy. Cotton MSP in the previous year was Rs 4,320 per quintal and traders and the Cotton Corporation of India lifted the produce from farmers, paying from Rs 3000 to Rs 4,300 per quintal.
As per the Central government estimate, the production of cotton in the present year is expected to come down due to drought, pest and cyclones.
Officials predicted 3.30 crore bales of cotton production against the 3.70 crore bales expected. G Srinivasa Rao, cotton buyer said that they had received orders from the traders of Gujarat and abroad for cotton. “Cotton production in the country is not at expected levels this year. Hence, the price is more than MSP,” he said.