Adilabad, January 23
Cotton farmers are reaping profits with the unexpected hike in cotton price in the market. The Central government announced Rs 4,060 as minimum support price per quintal.
The State government and agricultural department assumptions of less demand for cotton in international market turned false.
A quintal of cotton in Adilabad agricultural market, famous as the largest market in the State, demanded a price of Rs 5,500 while Rs 5,600 per quintal was paid in Kinwat, Pandarkavada and Yavatmal centres in Maharashtra.
Farmers are more than happy as they got Rs 1,500 extra on minimum support price as announced by the government. About 52 lakh quintals of cotton was sold in Adilabad last year. This year till January third week, 35 lakh quintals cotton sales were sold in Adilabad, Bhainsa, Asifabad and Nirmal market yards.
With another 20 days is left for cotton purchases in the market even as 85 per cent farmers have already sold out their yield.
More than the farmers, traders of ginning, pressing and spinning mills have gained profits with the sudden rise in cotton price. The cotton price is slowly picking up since January first week due to a decrease in production along with farming area, demonetization and other reasons.
Besides the rise of cotton bale (170 kilos) price from Rs 36,000 to Rs 39,000 in international market and the cotton seeds price rise to Rs 1,800 also got profits to farmers.
In Adilabad market, between 15,000 to 18,000 quintals cotton are sold sales, while farmers of Talamadugu, Jainath, Bela, Both, Kubir, Bazarhatnur, Ichoda, Tanur mandals are earning more profits by selling their yield in Maharashtra markets.
In Maharashtra, quintal cotton price is Rs 5,600 while it was Rs 5,450 to Rs 5,500 in Ichoda, Bhainsa and Adilabad. There are speculations that the price may further increase in the coming month.
Cotton Farmers said that there was more demand for cotton with private purchases only as CCI did not purchase cotton. But they felt that they were incurring loss as they had to reduce the cultivation area of about two lakh acres in Adilabad district following government statement.
Market experts predict the cotton price may go up to Rs 5,800 by February.