A bumper cotton crop is expected in the state this year which is likely to bring cheers to growers in the Vidarbha region too, Maharashtra State Cotton Growers Co-operative Federation chairman N P Hirani has said.
Cotton prices have ruled firm as the new season opened with steady flows of raw cotton.
Vidarbha has the largest area under cotton cultivation in the state and the cash crop has an influence on its rural farm economy in a big way.
This year, the yield is expected to be between 350 and 380 lakh quintals against 300 lakh quintals last season, Hirani said.
Last week, private traders started purchases and have already collected about 1.5 lakh quintals at rates fluctuating between Rs 4,150 and Rs 4,450 a quintal, way above the central government-fixed minimum support price (MSP) of Rs 4,100.
The Maharashtra State Cotton Growers Co-operative Federation has decided to open procurement centres from November 15.
However, an official announcement on this is likely only on November 9 or post Diwali, after the federation's board meeting in Mumbai, Hirani said.
Interestingly, the cotton prices in the coming days would largely depend on China. If the neighbouring country opens up for imports, Indian cotton growers can expect a good demand and consequently higher rates through exports.
There is a two per cent incentive of exports. But China exports are not a certainty because of economic slowdown there, sources in cotton industry said.
