Hyderabad, Velugu: Coupled with demand and shortage of supply the cotton prices are touching the sky with a quintal rate being around Rs 8 thousand. The depletion of stocks and increase in demand for cotton not only in India but also in the countries like China, Bangladesh, Pakistan has led to this encouraging situation. The reopening of textile industries, which were closed for a long time due to Corona pandemic , enhanced the demand for cotton supply. As the textile industries are extensively dependent on raw cotton to make cloths there is a shortage of supply to them and also the need for cotton imports in foreign countries including America and France to meet their internal demands has also pushed up, there has been all over demand for massive cotton supply. All these factors led to a sharp increase in cotton prices.
Taking advantage of the gap in demand and supply situation, the local ginning mills and businessmen purchasing the cotton stocks which again led to further shortage of supply and substantial hike in its price. With the exporters directly buying the cotton the price went up to Rs 8thousand per quintal in Narayanapet market. And in other markets in the State the rate being around Rs 7thousand to Rs 7,500per quintal. The cotton farmers who have reduced cultivation of the crop due to the closure of the textile mills, are very happy that there are good days for them again. Though the yield is lesser but as the demand increased they are making profits even by selling limited stocks. There are indications that the demand for cotton will continue for another three months as there is no possibility to enhance the production in a short time. The market sources are also optimistic about continued demand for another three months.
The cultivation of cotton is lesser in this year in comparison with the last year production. In the last year cotton was cultivated in 60.53 lakh acres but this time cultivation is confined to 49.97lakh acres. The rains during the months of June, July and again in September played a havoc with the cotton crop. As a result of it the farmers suffered heavy losses as their crop, which was about to be reaped, being destroyed in the rains. The cotton yield per acre was also fallen to five of six quintal which in normal conditions supposed to be around 10 to 12 quintals. The depletion of buffer stocks along with demand and reduced cultivation has become a boon for the cotton farmers as all the verities of cotton getting them good price.
