Cotton Prices Fall By `500 In Karimnagar Markets
Cotton prices have declined in agricultural markets across the erstwhile Karimnagar district: Reports
KARIMNAGAR: Cotton prices have declined in agricultural markets across the erstwhile Karimnagar district, with a drop of around ₹500 per quintal over the past few days.
When procurement began ahead of the Dasara festival, cotton was fetching more than ₹9,000 per quintal in all markets. The price has since fallen to around ₹8,500.
Traders attribute the decline partly to the Centre's decision to extend the customs duty exemption on cotton imports by two months, until December 31
Although procurement began before Dasara, arrivals gathered pace after the festival. In the Jammikunta agricultural market, traders initially offered ₹9,250 per quintal at auction. The price has now fallen to ₹8,500.
Cotton with high moisture content and poor quality is fetching prices below the minimum support price (MSP) of ₹8,667.
In the Peddapalli market, prices have declined to ₹7,300-₹8,500 per quintal from ₹9,000-₹10,000. Market sources said prices could fall further in the coming days.
The Centre had waived import duty on cotton from June 1 to October 31 and extended the exemption until December 31. Market sources said the move had affected domestic prices.
The price of a quintal of bale cotton has fallen to ₹ 62,000 from ₹68,000, while seed cotton prices have declined to ₹4,200 from ₹4,800. A market source said imported American cotton was being supplied to Indian ginning mills at ₹62,000 per quintal, prompting local traders to offer lower prices for domestic produce.
High moisture content is another factor affecting prices. Traders are offering lower rates because some farmers are bringing cotton to market yards without drying it completely.
The decline has added to farmers' difficulties after they faced problems during cultivation due to poor growth of saplings following deficient rainfall, pest attacks and increased pesticide costs.
Speaking to Deccan Chronicle, Jammikunta market yard secretary R. Mallesham said high moisture content and the extension of the customs duty exemption were among the reasons for the fall in prices.
He said prices could decline further but added that the Cotton Corporation of India, which had opened a procurement centre at the market, was ready to purchase cotton. Around 12,000 quintals of cotton have arrived at the market so far this season.
