Producers are less interested in selling cotton at the current price level in Telangana.

02-Nov-2024 04:07 PM

Warangal. Although the Central Government has increased the Minimum Support Price (MSP) of cotton by 7 percent compared to last year and this time fixed Rs. 7121 per quintal for medium staple variety and Rs. 7521 per quintal for long staple category, but producers are having a tough time selling their produce at this price. Actually, MSP is being reduced on the basis of moisture content in cotton.

Government agency- Cotton Corporation of India (CCI) buys only that cotton from farmers in which moisture content is between 8 to 12 percent. The remaining cotton is being purchased by traders at a cheaper price.

After Gujarat and Maharashtra, Telangana is the third largest producer of cotton in the country. According to official figures, the area under cotton cultivation there has decreased from 55 lakh acres last year to 44 lakh acres this time, while in some areas the crop was also damaged due to floods and rains. Untimely rains have affected the quality of cotton.

12.50 lakh tonnes of cotton was purchased by the central agency-CCI in the marketing season of 2023-24 and about 16 lakh tonnes by private traders.

Cotton consignments from Telangana were sent to neighboring states like Karnataka, Andhra Pradesh and Maharashtra, while some producers even sent their stock to Ahmedabad (Gujarat).

This time the government agency is not buying cotton with more than 12 percent moisture, while private traders are not ready to offer a price higher than Rs 6600-6700 per quintal for it. This has increased the trouble and anxiety of the producers.