ADILABAD: Cotton farmers of Adilabad district are a disappointed lot with prices of cotton falling in the Adilabad Market Yard in the past 15 days.
The price for cotton with 8–12 percent moisture has fallen to ₹7,300 per quintal today from ₹8,300 offered on October 14, the first day when commercial purchases began in Adilabad. At the Bhainsa market in neighbouring Nirmal district, the price had been higher at ₹10,000 per quintal.
Fall in prices began soon after purchases picked up during the last four days. As a result, farmers have started holding their produce. Only 2,200 quintals of cotton have been purchased at the Adilabad Market Yard. Farmers are hoping prices of cotton will pick up in the coming days.
Farmers are complaining that cotton traders are cutting the price being offered for cotton at the Adilabad market yard, saying it has high moisture content. They maintain that moisture percent will naturally be high because of weather being cold and foggy. Still they are drying their cotton in the sun before taking it to the market yard.
Central government has declared ₹6,379 as minimum statutory price (MSP) per quintal of cotton. Cotton Corporation of India (CCI) has not entered into commercial purchases saying private traders are offering a better price than MSP.
According to Adilabad Market Committee (AMC), ₹7,510 had been the price offered per quintal on cotton on October 27, ₹7,430 on October 28, and ₹7,330 on Saturday. These are the prices for cotton with 8–12 percent moisture.
AMC secretary M. Venkanna said prices of cotton bales and gatans have come down in the national market. This is reflecting on cotton prices at the local level. He observed that prices will continue to be similar during the next 10–15 days.
The general practice of private cotton traders is that they purchase the commodity at cheap prices from farmers when they know that the produce is abundant. They hike the price only when there is less cotton in the hands of farmers.
There are allegations that market committee officials are helping private cotton traders purchase cotton at cheaper prices from farmers.
