This year again there is windfall gain for the cotton growers of Punjab. The average price of medium staple cotton in the state is ruling above MSP of Rs 2,800 per quintal in different mandis of the state. Analysts feel in coming days the price of cotton would further surge.
Sources said, the average price of cotton was hovering between Rs 2,850-Rs 3,000 per quintal, going even up to Rs 3,435 per quintal in some cases. Reports say the entry of CCI (Cotton Corporation of India) led to spurt in prices of cotton. However, the arrival of cotton in different mandis of the state is less as compared to corresponding period last year. Overall, 13.74 lakh quintals (2.76 lakh bales) were procured from different mandis by private traders and CCI as on October 26 as compared to 13.80 lakh quintals (2.74 lakh bales) procured during the corresponding period last year.
At present, the procurement in the state is dominated by private traders who procured 9.24 lakh quintals while CCI managed to procure 4.50 lakh quintals. Experts said, earlier in absence of CCI, the average price in the cotton markets in Malwa region (one of the prominent cotton belts in Punjab) was quoted much below the MSP of Rs 2,800 by private traders. According to sources, prior to entry of CCI, cotton was being traded in various mandis of the state about Rs. 200-Rs. 300 less than the announced MSP.
In the absence of any government agency, the private buyers were offering lower price than the MSP to the farmers, as a result of which, farmers were distressed, an official in the Punjab Mandi Board said.
As per the Board, the price of cotton (long staple) is ruling at Rs 2,000 to Rs 3040 per quintal, while the price of medium staple hovers around Rs 2,050 to Rs 3,435 per quintal. This year, Punjab has brought 5.36 lakh hectares land under cotton crop against 5.27 lakh hectares last year, posting a jump of 2 per cent. Further, the state is expecting to achieve cotton output of 90 lakh quintals this procurement season as against 74 lakh quintal last year, according to the state government estimates. The area under cotton surges this year because cotton growers got handsome prices for their produce.
